Middle Eastern Investors Turn to Southeast Asia for New Opportunities
Why are Middle Eastern Investors Interested in Southeast Asia?
Middle Eastern institutional investors are diversifying their investments. This means they are putting their money in more different places. Recently, they are very interested in Southeast Asia. This is because Southeast Asia’s economies (how well countries are doing with money and business) are growing fast.
Changes in Investment Focus
Before, Middle Eastern family offices (groups that handle money for wealthy families) mostly invested in places like the US and Europe. But now, this is changing. Helmut Schuehsler, chairman and CEO of TVM Capital Healthcare, says they are now looking at Asia. TVM Capital Healthcare is a company that helps people and businesses grow by investing money in them. They have offices in Dubai and Singapore.
The New Fund
TVM Capital Healthcare just closed its second fund (a collection of money for investing) from the Middle East. They got US$250 million last month. This fund, called the TVM Healthcare Afiyah Fund LP, includes money from big investors in the Gulf countries (like Saudi Arabia) and Europe.
Political Effects on Investment
There are political issues between China and the US. This makes Middle Eastern investors want to stay neutral (not choosing sides) and build relationships with lots of different places, especially Southeast Asia.
Real-World Example: Vietnam
TVM Capital Healthcare has already used some of the new fund to invest in three businesses. For example, they invested in Alina Vision, a company that provides eye care services in Vietnam. This is an example of how they are putting their money into useful services in Southeast Asia.
New Fundraising Efforts
The company is also trying to raise another fund focused just on Southeast Asia, aiming for US$150 million to US$200 million. They hope to start getting money from investors by the end of this year.
Broader Investment Strategies
Middle Eastern investors are not just putting money into real estate (like buying buildings and land). They are also exploring private equity. Private equity means investing in companies that are not listed on the stock market. They used to only give a lot of money to big companies, but now they are looking at smaller businesses that need money to grow.
TVM Capital Healthcare’s Plans
TVM Capital Healthcare has been active in the Middle East since 2010. They invest in companies that are starting to make money and have a big potential to grow. They focus on healthcare companies, like those that make medical equipment or provide health services. They typically invest US$10 million to US$30 million in each company.
Future Prospects
By the end of this year, TVM Capital Healthcare plans to invest all the money from the Afiyah fund into six to eight different businesses. Schuehsler believes that in the next decade, Southeast Asia will become a key area for investment, similar to the US and Europe. There is a lot of business potential in Asia that Middle Eastern investors are eager to tap into.
This new trend shows that Middle Eastern investors are looking for the best opportunities around the world. They are putting their money into places with growing economies to ensure they make good returns.
