Our extensive investing, corporate advisory and capital markets experience gives us scope to add value to businesses in a variety of ways. We are therefore looking to be long-term capital and strategic partners for businesses we invest in and are looking for outsized returns upon exit.
At times, we will be co-invested with trusted investors in our network; which may include individuals with relevant industry expertise and institutional investors. Although agnostic in the sectors we invest in, RHL will favour consumer-based companies that are able to leverage the population dividend currently happening in Asia.
RHL Ventures is inspired by the big impact a small business can have on its economy and we are inspired by the humble beginings that so many of them share. Moved by the experience of our families and friends, RHL Ventures was founded to empower entrepreneurs looking to change the world. We understand that for many of these businesses the traditional way of investment does not work. What is needed is an investment philosophy that marries the best of public and private equity markets to create a holistic funding solution that understands and amplifies the talent, energy and potential of small businesses that would like to operate in South East Asia.
THE RHL WAY
Our investment mandate is highly flexible; our fund invests in private companies in ASEAN across different security types. Our preference is taking an equity stake of 10%-30% in a business, leaving all management rights with existing managers and owners. In special circumstances, RHL is also able to structure deals across different asset classes.
This philosophy allows us to circumvent the constraints of most traditional private equity and public investors, such as the conflict of interest in the ownership of capital, and we are not restricted to short-term market performance benchmarks.
We are sector-agnostic and are looking to work with management teams and boards in the following areas:
- Strategy and long-term development plans.
- Assessing capital allocation alternatives.
- Board construction and corporate governance.
- Management remuneration and equity incentive structures.
- Investor communications.
- Improve decision making by providing management insights and data from our global industry research.
- Leveraging our global networks to improve business outcomes.
- Major transactional events such as M&A, public to private, IPO and other capital raisings as well as bank refinancing.
We are looking for businesses that have achieved commercial breakthroughs and are starting to penetrate target markets with long term value creation prospects. Typical characteristics of these companies include:
- Board and management team consisting of founders, innovators and entrepreneurs; in short, a management team that acts like owners
- Valuations that reflect stage of development and accompanying risks and that do not yet fully capture long-term growth potential
- Several future funding rounds to be anticipated as the business progresses, but currently external funding is required for growth and execution
- Risks are becoming less binary and are more correlated with wider markets and economies
- Low or no financial leverage
- Company culture that fosters innovation and adaptability to changing environments
- Proven business with track record of at least a year
- Able to demonstrate a clear path to scale for a large number of end users over the investment period
PARTNERS AND CO-INVESTORS
The Vertical Business Suite
Jalan Kerinchi, Bangsar South
59200 Kuala Lumpur, Malaysia