Understanding Risk and Implementing International Operating Performance Standards
After the 1998 Currency Crisis, countries like Thailand and South Korea benefited from proactive government involvement in the bailout of the banking industry and their private sector restructuring. The Philippines did not, and as a result, its recovery was U-shaped and private equity markets were highly illiquid well into the next decade. Valparaiso entered the Philippines in 2007, with an investment strategy focused on prime commercial properties with high tenant vacancies. Valparaiso directly managed the design development, renovation, and construction execution using foreign architects and construction management, After the upgrades were completed, we administered leasing, capital expenditures, and financial control.
Example transaction below is 6780 Ayala Avenue, Makati, Manila:
Philippines Investment Criteria:
Focus on non-traditional businesses or asset classes.
Minimum project size: US$200 million.
Targeted net IRR > 15%
Hold period: 4-6 years
Controlling interest and in-house management team
Existing cash flow generating business