Focus On Asia: Creating Business Partnerships
By Craig Wilkinson, Managing Director, LDC Asia
Selecting Hong Kong to base our first international office was not a difficult decision. As a gateway to the Asian region it not only has an established advisory network with a truly ‘international’ outlook but it has a well developed legal framework and strong corporate governance structure. This made the transition from domestic UK private equity player to one with international aspirations much much easier.
Commercially it was a simple decision – access to a marketplace comprising not only China with one of the fastest growing economies in the world, but also with the ability to tap into other Asian markets (and Australia). We also have previous experience of working in Asia with a number of our portfolio companies.
Our focus for the team has not changed since we landed in late 2008 – a clear remit to assist those
UK based LDC portfolio businesses that wish to identify and pursue a range of value adding international commercial options. This ranges from supplier sourcing, outsourcing, market entry, and partnerships right through to business development and exit options.
This primary goal works alongside LDC’s ambitions to invest directly into Asian businesses. Thus far the LDC team have committed over $50m to two funds in the region.
But to make this happen it is essential to work with, and alongside, the right network of competent and experienced individuals…this is why ‘creating business partnerships’ has become our guiding light. We could add the word quality to this! Without relationships we cannot undertake what we aim to do, although nor can anyone else in this region!
Our successes thus far range from a number of market entry introductions and sourcing opportunities right through to the establishment of local operations.
A great recent example is a company called Microlease, a leading supplier of Test and Measurement Equipment to the telecoms, aerospace and defence industry. The team in Hong Kong has supported Microlease as they progressed the establishment of their own China operation. This included support on office location and direction on advisory services for accounting, legal and tax issues.
Bill Colley, Commercial Operations Director at Microlease, paid us the compliment of saying:
”When trying to break into new markets, like the Far East, there is nothing better than having trusted colleagues on the ground with access to local intelligence.”
So what next for the team in Asia?
With an LDC list of 60+ companies stretching across a number of different business sectors I suspect very much more of the same…which should be good news for those companies looking further afield and also for LDC.
More information about LDC in Asia can be obtained directly from the team in Hong Kong by contacting orong@ldc.com.uk
