Cliff Zhang, CEO of Templewater, sees a decline in fundraising in the private equity sector over the past two years.
In terms of investment themes, Zhang identifies healthcare and decarbonisation as sectors of interest. He stresses the importance of Asian fund managers developing skills as business owners and operators, not just financial investors.
In the face of geopolitical difficulties, Zhang acknowledges that it has become particularly difficult to attract capital from the US to Hong Kong. In response, Templewater has been exploring new markets, including the Middle East, where the company has signed an MOU for a green bus project in Abu Dhabi, drawing on Templewater's experience with hydrogen buses in Hong Kong.
For exit strategies, Zhang is looking at sales to other companies rather than IPOs, given the current market. Templewater targets an IRR (Internal Rate of Return) in excess of 20% for its funds.
The company recently acquired OncoCare, an oncology business in Singapore, and Night Auto, a manufacturer of semiconductor test kits, also based in Singapore, with regional expansion plans for these entities.
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