Singapore’s asset management industry has fast become a global hub for investors and managers and is central to the country’s financial services industry. In 2020, total assets under management (AUM) in Singapore grew 17 percent to reach S$4.7 trillion, up from S$4.0 trillion in 2019[1]. This robust growth was driven by strong inflows into both traditional and alternative investment strategies, including the private equity (PE) and venture capital (VC) asset classes. PE and VC AUM grew by 54 percent and 49 percent to S$375 billion and S$16 billion, respectively, in that year. In our view, the size of the industry in Singapore will continue to grow in the coming years.
Navigating Crisis – Considerations for Private Equity and Venture Capital Funds
Globally, private equity (“PE”) and venture capital (“VC”) funds ended April 2020 with a record $2.6 trillion in unspent capital at their disposal. With cash readily available, the ongoing coronavirus pandemic presents ample opportunities for well-managed PE and VC sponsors to capitalize on these trying economic circumstances. At the same time, the economic damage wrought by the pandemic presents significant challenges to sponsors and their portfolio companies. This article discusses some of the ongoing opportunities and challenges PE and VC sponsors face, with a focus on three broad categories: (i) considerations for existing portfolio companies, (ii) the impact on transaction execution and terms for new portfolio investments, and (iii) fund-level considerations.
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