Targeting Direct Investors With Proprietary Analysis

Cameron Highlands is a popular destination in Malaysia

We were approached by a venture-size hotel company headquartered in Vietnam to find a direct equity investor for their firm. Yet we recognized that global markets were flooded with hotel deals; we ourselves had passed on many projects because they lacked affinity appeal for our audience. While we knew this transaction was unique, the quandary was how to distinguish the deal so that it would stand out amid the pack. One factor would likely be the content and context of deal-related material.

Project Design. We relied on our heritage in investment strategy to develop and distribute proprietary analysis on selected macro-themes, such as China’s dominance of the international travel market. Once we identified investor interest within our network, we complemented those reports with professionally-developed deal material, featuring portfolio properties in Mongolia and Indochina, among other Asian locations.

Summary Points

Investor Dialogue. Our experience informed our decision to avoid over-configuring the transaction, wanting to ensure that we could be responsive to specific investor requirements. We felt it would be unwise to create artificial hurdles to deal closing, such as capital-structure or jurisdictional concerns. One feature was segmenting the operating company and real-estate holdings to recognize the potential for the two sides of the transaction.

Follow-Through. Sizeable institutions have considered the deal, including a sovereign wealth fund and an internationally-recognized private-equity firm. We guided the parties through early-stage due diligence, compiling a dossier on each transaction component. We responded systematically to questions related to the financial analysis of existing operations. We meanwhile explored potential with non-traditional cross-border investors, such as integrated travel companies headquartered in the developing world.

Note: The featured image depicts a tea plantation in the Cameron Highlands, near Kuala Lumpur. The project sponsor considered Malaysian property development.

Banner Image: Goinyk at Can Stock Photo Inc.