Our
Strategy

The Firm’s strategy is to invest in Asian private equity funds, both primary and secondary, and direct co-investments in the small and middle market segments, with particular focus in Greater China, India and Southeast Asia. The goal is to assemble a diversified portfolio with a favorable risk-return profile for investors.

The investment strategy is based on an assessment of the abundant private equity opportunities arising from the large populations, rising middle class, ongoing urbanization and increase domestic consumption in the emerging Asia region. In the last 5 years, this region accounted for more than 50% of the total private equity investment in Asia. The trend is expected to continue. Apart from quantity, the market has also grown in both breadth and depth, offering investors a smorgasbord of choices to meet their investment strategy and to achieve the desired diversification.

The majority of Eagle Asia Partners’ target managers are investing in small to mid-cap sized companies, with enterprise values typically up to $500 million. The Firm believes that private equity funds that operate in this market will remain most resilient and agile in capturing investment opportunities in the vibrant but complex business environment of Asia.

The Firm takes a bottom-up selection approach by evaluating the wide range of private equity investment opportunities to identify as many high quality managers as possible. The investment risk will be constantly monitored to avoid any unintended concentration in terms of strategy, stage and vintage. Geographical diversification will be achieved by the investment limits impose on any single country.

Over the years, the Firm has developed and implemented a systematic due diligence and investment process in screening and selecting managers. Each underlying fund will be subjected to systematic and multi-stage due diligence analysis with stringent selection criteria. Among the various evaluation criteria, the Firm places particular emphasis on managers exhibiting characteristics of “sustainable competitive advantages”, which the Firm characterizes as managers that: (i) have a proven history of strong investment track record; (ii) have differentiated capabilities in deal origination and sourcing; and (iii) have demonstrated ability to drive value creation post investment. The Firm will also select emerging fund managers, including first time funds raised by experienced managers. These managers are generally more entrepreneurial and have stronger motivation to outperform their peers. As they are, typically, managing their maiden fund, they also tend to align their interests better with investors.