1. An Analysis of
Private Equity
of Investment

2. MD Raihanul Hasan
Senior Lecturer
School of Business
State University of Bangladesh
Sanjida Sayed Barsha
ID: UG01-24-10-045
School of Business
State University of Bangladesh

3. Overview of
InvestAsia Capital & Asset
Management Ltd

4. Name of the Company InvestAsia Capital & Asset Management Ltd.
Legal
Form
Technical collaboration with Financial Intelligence Services Ltd (FISL) of
Hong Kong
Date of Incorporation July, 2009
Date of getting License 15th February, 2012
Date of
Commencement
October, 2012
Operation
Structure
InvestAsia has appeared in the market horizon to offer innovative
solutions to satisfy all asset management and financial services
needs, and to deliver tangible results for clients through full service
access to our capital market & MF Management, Diversified
Portfolio Management, PE Management and other innovative
capital market products.
Office Address 1/A D.I.T Extension Road (3rd
floor), Fakirapool, Motijheel, Dhaka-1000,
Bangladesh.
Web Site http://www.investasia.com.bd

5. # Mission:
We aspire the best chosen and most admired financial
institution.
That offers an array of lucrative products.
 Vision:
To be the most respected, trusted and prominent
Asset Management Company in Bangladesh.

6. Private Equity

7.  Definition
Money invested in firms which have not ‘gone public’.
Private equity consists of investors and funds
Capital for private equity is raised from retail and institutional
investors
Capital can be used to fund new technologies, expand working
capital within an owned company, make acquisitions, or to
strengthen a balance sheet.

8.  Characteristics
Highly illiquid
Long holding periods
High risk-return
Asset class
Grouped into a broader category
called private capital

9.  Types of Private Equity Funds

10. Buyout: funds provide equity capital to mature firms in need
of capital or ownership transition.
Venture Capital: funds provide equity capital to start-ups
and companies in the early stages of growth.
Growth Capital: funds provide expansion capital to enable a
company to scale a business.
Special Situations: funds tend to invest in mezzanine or mid-
layer debt capital, which provides more protection than equity
financing in the event of default.
Generalists: funds invest in a variety of different stages.

11. Investment sectors of Private Equity
Business Services
Healthcare
Consumer
Industrial

12. Lifespan of Private Equity

13. Private Equity’s
Impact on the
Global Economy

14. Private equity-owned firms are generally better managed than
counterparts and have strong operational management
practices
Firms acquired by private equity groups experience higher
productivity growth than firms of the same age, size and
industry
The globalization of private equity by investigating its impact
in France and emerging markets

15. Rank Name of firms Headquarter Capital Raised as
May 2013(billion
of USD)
1 TPG Capital Fort Worth $ 35.73
2 Carlyle Group Washington, D.C. $ 32.82
3 The Blackstone Group New York $ 29.56
4 CVC Capital Partners London $ 17.99
5 CPP Investment Board Toronto $ 9.12
6 Nordic Capital Stockholm $ 7.74
7 PAI Partners Paris $ 7.55
8 China Investment
Corporation
Beijing $ 7.00
9 CDH Investments Hong Kong $ 6.51
10 RRJ Capital Hong Kong $ 5.80
11 Hitec Vision AS Stavanger $ 5.73
12 Energy Capital Partners Short Hills, NJ $ 5.70
Largest Private Equity Firms

16. Private Equity
practice in
Bangladesh

17. IFC, a member of the World Bank Group
CDC Group, the UK’s development finance institution

18. Investment Opportunities
ICT
Energy and Power sector
Ship building

19. Benefits
&
Challenges

20. Benefits
Allow entrepreneurs to build
their company with OPM
Private equity provides the
funding that a company needs to
expand its business.
Offers a number of value added
services.
Company increases it value and
ultimately has a liquidity event
(e.g. IPO or sells to another
company).

21. Challenges
Lengthy and complex process
In the deal negotiation stage, you
will have to pay for legal and
accounting fees.
Investors become part owners of
business - founder loss of autonomy
or control.

22. Recommendations

23. Provide more infrastructure facilities.
The company involved should be in charge of the technical
project management, while local staff can do the
administrative part.
Need to ensure that governments and regulators around the
world do not take actions that inhibit private equity firms from
achieving superior returns for their investors.

24. The industry needs to continue to expand its post-investment,
value-add capabilities
The current low market values also offer opportunities for
Venture Capital and Expansion Capital funds
PE players need to intensify their work on generating
appropriate returns

25. Thank You