Seeking uncommon opportunities outside conventional asset classes
Information, price discovery, and regulations in Singapore are highly transparent in this relatively small market. Debt financing is readily available, and the legal systems for commerce is perhaps the most efficient in the world.
Valparaiso’s strategy in Singapore is to seek, at the right time in the business cycle, operating businesses with underlying real assets that have strong cash flow and growth potential. We are sensitive to the prospective view of and signals given from the relevant government agencies in a particular sector or investment outlook. Working within the framework of the government’s comments and guidance is a key factor to success.
Singapore 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
Example of Singapore Criteria:
“… the disposition of four permanent workers dormitories by Morgan Stanley to a consortium of foreign and local investors led by Valparaiso. The dormitories which are called Kian Teck Dormitory, Woodlands Dormitory, Tampines Dormitory, and Avery Lodge was sold for approximately $380 million which translates to an estimated net yield of 9.75 to 10.25%.”
Source: Jones Lang LaSalle, as stated in Appendix H of SGX-ST filing of SM Summit Holdings Limited, dated June 30, 2011.