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Portfolio

FOCUS

Evia will be focusing on ; mainly the growth stage of a company, geographic locations familiar to the Principals and sectors with high growth investment opportunities that fall within the area of expertise of the principals and their advisory network.

Though we will be responsive to changing market conditions throughout the life of the Fund, we anticipate that the Fund’s primary focus will be on fast growth enterprises in the following sectors:

Telecommunication, Media and Technology (TMT)

The Principals believe that the convergence of telecom, content and mass media is finally becoming mainstream. We also believe that the emergence of software services targeting the social media and enterprise sector form a sector that merits serious consideration.

Consumer Related Industries

The emergence of a growing middle class is one of the vital mechanisms behind changing attitudes towards consumption in the region. Asia’s consumer market is projected to be worth US$56 trillion by 2030 according to the OECD and Asian consumers will drive 80% of the growth in global middle-class spending. China’s consumption currently only represents 36% of its total GDP ,approximately 40% the size of the US consumer market, making it the second largest in the world. This offers exciting investment opportunities in this sector.

Healthcare

The Principals expect one focus of the Fund to be on life science and healthcare companies including biomedical device and/or drug development companies with near term exit visibility. With significant government endorsement and funding, Singapore is rapidly establishing itself as the leading hub in Asia for biomedical sciences.

Environmental Technology

Given Asia’s growing need and awareness for water self-sufficiency, environmental preservation and energy, the Principals expect to find investment opportunities for the Fund in water technology, bio mass, waste treatment and clean tech. Bio and clean chemical fuel is also another potential area of focus and the Principals intend to search out companies with proprietary technologies and minimal capital expenditure requirements.
Precision Manufacturing – In our view, there are attractive investment opportunities in China-based companies that are engaged in design and manufacturing. Our investments in AAC Acoustics and Sunny Opticals have shown that companies in China are well poised to take on the Taiwanese and Japanese players, both of whom have traditionally been the leaders in precision manufacturing space.

Resources & Resource related

This sector covers a wide scope ranging from natural resources that are mined or raw to a range of service to support the resource industry. As more energy is being produced and consumed, we see great value and opportunities into investments which address problems associated with the diminishing supply for a wide variety of natural resources.
APPROACH

The Principals expect to leverage their extensive personal networks to obtain qualified proprietary investment leads for the Fund. Since the inception of Evia in 2004, the Principals have spent significant amounts of their time in networking and enhancing their personal networks in China and Singapore. Evia I has had sufficient, and in fact excessive deal flow, both proprietary and through co-investment opportunities from peer firms. The strategy engaged in future funds will be largely similar. We will focus on our network of successful entrepreneurs, source out high quality listed companies with strong growth story that require growth capital at a project level. Such investments will be highly stable with built-in guarantees.

We expect the Fund to generate top docile investment returns by targeting niche businesses in Asia with Pan-Asian and/or global potential. The Principals intend to focus the Fund on portfolio companies that have proprietary and innovative business models, valuable intellectual property and proven management teams. In addition, we intend to leverage the Asian economies for market and talent for the Fund’s portfolio companies. To manage portfolio risk, the Principals expect to diversify the Fund across geographic regions, business sectors and stage of investment.

CRITERIA

When evaluating investment opportunities, the Principals intend to study key aspects of prospective portfolio companies, including:
Composition of the board of directors and management, including their backgrounds, track records, venture capital funding, and corporate exercises or mergers and acquisition deals that they have undertaken.
The experience and execution capability of the management team, and its ability to identify product needs, significant market potential and cross-application potential. The management of portfolio companies should preferably have proven records of leadership, in-depth sector understanding, the ability to attract the best people and adapt in dynamic, highly competitive environments.
The exclusive nature of the company’s technology, scope of protection of its intellectual property and the extent of existing and potential competing technologies. The portfolio company should have intellectual property and product differentiation with long term defensibility, first-mover advantages and scalability.

The company’s cash burn rate, cash funding position and ability to mobilize sufficient capital to fund its research and development and other business development work.
The existence of significant entry barriers which will allow the company to build sufficient lead time over potential competitors. Such barriers to entry can come in the form of proprietary technical know-how, patents, capital requirement, market access, regulatory requirements, etc.
The existence of market potential; particularly, segments within industries that have very large market sizes, rapid growth, high profitability, favourable timing, and attractive competitive dynamics.
Sale, merger or listing exit potential within two to three years including follow-on investments.
Scope for collaboration with the Fund’s other portfolio companies to build portfolio synergy through leveraging complementary products/ services, business linkages, partnerships, and management resources and expertise.