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STRATEGY
Since Aton Assets Asia’s establishment, our private equity strategy has been to invest in selected fundamental business sectors in which we have prior knowledge and specialization – manufacturing, business consultancy services, value-added distribution and supply chain management. To date we have a portfolio of companies, including startup and early stage companies, creating a deep reservoir of experience and contacts across a broad array of industries.
Our customers have the possibility to deeply understand the sector(s) where we deploy their investment; we invest in the main street, in the real world. We look at the fundamentals of the business; in this respect our team will deliver to you a clear detailed business plan where we see the potential growth opportunities of a growth. Identifying the right early stage entries is a fundamental strategy for us.
Regardless of the nature of the business or transaction, our goal is to grow and improve the business as a partner together with the management and our co-investors.
AREA APPROACH
Currently Aton Assets Asia is focusing its attention on business opportunities in the Asia Pacific Region, Europe and Africa.
The main investment criterion is the possibility to exploit collaborations between these 3 macro areas:
1. ASIA
Where we can use the manufacturing possibility from one side and the enormous potentiality of the internal markets in countries like China but not just limited to China.
We identify entry strategies for Asian companies, and in particular Chinese companies, on the route to globalization, looking for distribution channels, global brands, technologies and know-how.
China's position in the world economy has changed since the economic crisis of 2008 and 2009. It is no longer simply perceived as the "production workshop of the world". It is now recognized as a possible engine for global economic recovery, with the help of huge government stimulus packages as well as the strong commitment of Chinese entrepreneurs who have ambitions to be successful domestically and in the global markets.
2. EUROPE
In Europe there is a strong tradition and culture of branding and brand management. We have access to many European companies with brands, know-how and patents in different sectors.
Seeing the potential rewards of Asian growth, more European companies are seeking production capacity in Asia as well as a marketing channel to the increasingly affluent middle-class Asian consumer.
European companies that focus on advanced technology and machinery will find attractive business opportunities in Asia since manufacturers seek to produce higher quality and higher value-added goods as they move away from low-value mass production. Other sectors ranging from healthcare to leisure and travel are also prioritizing the Asian markets, where they see less competition and more prospects for expansion.
Our well-developed relationships across Europe allow us to identify and privately approach companies that might not otherwise be available for public investment.
3. AFRICA
For many investment observers, Africa is being seen as the next economic growth phenomenon to be aware and positioned for. In this continent we see many potential interests and not just limited to commodities and agriculture.
We have already invested in projects in some selected areas with established partners, which we can introduce to you. In these countries we work with trusted partners having many years of experience of doing business in Africa. We have dedicated time and resources in nurturing and building relationships with these managers and monitoring their performance over the last few years. Today our projects here are mostly in industrial commodities with the end markets being in Europe and Asia.
SECTOR APPROACH
We work in sectors where we can spot one or more of the following characteristics:
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Where a global supply chain is a MUST |
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From OEM to Brand to Distribution |
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Where emerging new technologies are going to fundamentally reshape the industry |
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Where accessing a reliable source of commodities is a MUST particularly to sate the Chinese appetite |
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Web-based technologies and business models creating blue-sky opportunities thereby reducing the need for heavy capital intensive investment |
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How We Invest
Successful investment requires a well-defined strategy and prior experience. We work closely with our clients to develop and define a clear view on their growth opportunities and capital needs. Depending on these requirements we evaluate alternative structural solutions and then select the optimal configuration.
We only invest in business areas where we have previous, proven expertise. Identifying a promising business opportunity means considering not only the risk and reward factors of the individual business, but also the context and culture in which the business operates. Without understanding the unique qualities of the sector a business is in, it is impossible to arrive at a credible judgment.
From the above understanding, we assemble a “circle of competence” as strong as possible. We then bring in qualified & well experienced people with proven track records to build the management team and look for investors who can bring in the finance and business competence. We don’t make a mere allocation of funds we are here to build successful teams, where each investor, in addition to their investment, has an active role in the project/ investment.
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Socially Responsible Investment
We believe that environmental, social, ethical and governance considerations are an integral part of an investment decision-making process aimed at maximizing returns for investors.
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In addition to assessing prospective investments in a manner that reflects Aton Assets Asia’s commitment to promoting ethical governance, good corporate citizenship, protection of the environment, and sustainability, we also pro-actively maintain a culture that is based on the core principles of honesty, integrity, and transparency. Our company has in place an integrity policy aimed at ensuring its personnel conduct their business in accordance with the firm's high standards and in the best interests of our investors.
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Opportunities
At this point our approach to investment opportunities should start to become more clear; we focus in the three-macro areas explained above and in sectors where we see growth; for example we are currently working in renewable energy projects and new technologies with Chinese and European companies.
We work with all size of companies, and discriminate not by size but by competence. We believe in motivated staff and customers.
We believe that today there are more opportunities than in the past. Due to globalization the world is becoming flat and consequently that for a good new product/service the rewards can be huge. Today a dynamic company with growth prospects has the chance to quickly scale-up and become world class very quickly. As the world is changing this offers a tremendous opportunity for those people and companies having the curiosity to take advantage.
As China becomes more open to direct foreign investments and due to the development of its financial sector, investments with local small-medium enterprises represent an attractive and profitable option for private equity firms.
The prosperous outlook of China’s private equity market has already convinced many of the world’s largest asset managers such as Carlyle, Blackstone, BlackRock, Prax Capital and others to set up Renminbi equity funds in the region. In China, when private equity is executed well, the returns can be staggering. One of the best examples is that of Hepalink, a Chinese drug company, whose May 2010 IPO in Shenzhen scored a 235-fold return for private equity stake investor Goldman Sachs.
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