Juan Figar De Lacalle, Managing Partner at Collyer Capital, on trends in SEA private equity investing

In a recent ION Influencers Fireside Chat, Juan Figar De Lacalle shared his journey into private equity, starting in Spain and transitioning to Southeast Asia after social work in Cambodia. His experience in asset management and business development led to the founding of Collyer Capital, focusing on fund of fund strategies tailored for European family offices entering the SEA market.

Key Topics Discussed

1. Why Southeast Asia?

Economic Growth: SEA countries have averaged 5% GDP growth over the past 20 years.
Drivers: Internal consumption, young population, digitization, and a burgeoning middle class.
Economic Bloc: SEA is the 5th largest economic bloc today, projected to become the 4th by 2030.

2. Manager Selection

Challenges: Selecting the best managers in SEA’s diverse market.
Approach: Hybrid fund of funds combining co-investment and secondary strategies.
Focus: Lower to mid-market SMEs, pivotal to the region’s economic growth.
Local Expertise: Importance of relationships and local knowledge in identifying top managers.

3. Track Record and Impact Investing

Experience: Managers with substantial experience from Western firms and local sovereign funds.
Impact: Integral to Collyer Capital’s strategy, focusing on empowering economic development and adhering to ESG standards.
Personal Commitment: Juan’s dedication to impact investing, stemming from his time in Cambodia.

4. Sustainable Growth

Foreign Investment: Essential for supporting growth.
Country Characteristics: Diverse economic drivers of SEA countries like the Philippines, Thailand, and Vietnam.
Economic Landscapes: Unique attributes of each country contributing to overall growth.

5. Regulation and Geopolitical Risks

Investor Concerns: Regulation and geopolitical risks.
Reassurance: Most managers operate through Singapore, known for its rule of law.
Stability: SEA countries are generally stable and welcoming to foreign investment.

6. Co-Investment Strategy

Reporting Systems: Detailed information from managers to identify co-investment opportunities.
Focus Areas: Sectors like microcredit and education.
Alignment: Co-investments aligned with impact and return objectives.

7. Future Directions

Expansion: Potential growth into private credit and venture capital.
Focus: Maintaining emphasis on growth equity.
Understanding the Region: Importance of regional knowledge and market dynamics.

8. Exits and Secondary Strategies

Private Equity Exits: Predicted increase driven by strategic sales and secondary transactions.
Integration: Secondary strategies integrated within Collyer Capital’s primary investment approach.

9. Industry Trends and Fee Structures

Fee Pressure: Noted in developed markets but justified in SEA due to value creation.
Alignment: Interests between managers and investors aligned for optimal returns.