TRG Private Markets
TRG specializes in investing alongside entrepreneurs, families and management teams in middle-market businesses in the Global Emerging Markets of Asia-Pacific (including China and South-East Asia), India, Latin America, Emerging Europe, Africa and the Middle-East.
TRG believes that Emerging Markets offer attractive investment potential given the structural nature of their growth trajectory, improving investment fundamentals and increasing cross-border opportunities. TRG’s private markets team is cognizant that this upside potential brings with it macro and micro risks. Therefore, TRG has developed its private markets investment strategies to focus on investment themes, markets, industries and companies with positive risk-adjusted return potential. TRG focuses on downside protection through the rigorous application of its investment process, which features business due diligence, deal structuring designed to control key elements of value creation, active monitoring of portfolio companies and portfolio diversification. TRG’s Private Market’s strategy is centered on the following points:
Key Investment Themes+
TRG has identified four investment themes that play to Emerging Markets strengths. The themes are (a) consumer-demand driven industries; (b) infrastructure driven businesses; (c) industry consolidation and restructuring and (d) cross-border opportunities.
TRG specializes in the Global Emerging Markets of Asia-Pacific (including China and South-East Asia), India, Latin America, Emerging Europe, Africa and Middle-East. The team’s experience and deep network of relationships allows it to form and constantly update its views on specific markets and the relative attractiveness of each market as an investment opportunity.
TRG’s strategy naturally lends itself to take a core-satellite approach to investing – focusing on approximately 15 regions or countries as a core focus and some others as satellite regions, on an opportunistic basis but typically only within our core industries.
TRG’s team has repeatedly invested in a core set of industries. This, along with the backgrounds of the senior investment professionals has enabled the team to gain significant insight and investing experience as well as build deep management networks in these industries.
Key industries include:
- Infrastructure Services
- Energy, Metals & Mining
- IT & Business Services
- Telecom, Media & Technology
- Financial Services
Companies with Compelling Characteristics+
Within the themes, geographies and industries, the team aims to identify and pursue companies that distinguish themselves by excelling in a combination of the following:
- Strong Sponsorship and Management. Reputable families/entrepreneurs and experienced, committed management teams are critical to value creation.
- Market Position. Companies with defensible market positions and with due consideration for developmental impact from its product offering, customer portfolio and vendor/supplier base create natural barriers to entry.
- Exit Prospects. Businesses with certain unique characteristics (such as strategic importance, strong cash flows) naturally offer more than one exit alternative.
- While pursuing attractive investment opportunities, TRG tailors investment structures and seeks terms, where practical, to protect the value of an investment in a potential downside scenario.
TRG manages its portfolio through appropriate diversification and optimizing its overall risk-return profile.
- Diversification - the team’s knowledge and local insight of each of its key markets is critical in the comparison and evaluation of investment opportunities across Emerging markets, and allows the team to select those opportunities that present the optimal risk/reward profile. This results in a well-balanced, diversified portfolio allocated across a number of countries and industries.
- Optimizing Risk/Return Profile - the team's flexible investment style across the capital structure implies that investments can take the form of a buy-out, minority investment, mezzanine debt or have blended features. The objective is to structure investments to maximize exit options, mitigate risk and influence behaviours to align all stakeholders to the same goal, thus capturing the best possible risk/reward profile.
The following information, including the investment performance, is set forth solely for information purposes and does not constitute an offer to sell or a solicitation of an offer to buy an interest in the fund. Any such offer or solicitation will be made only by means of a confidential private offering memorandum relating to a particular fund or investment management contract and only in those jurisdictions where permitted by law. Past performance is not indicative of future returns. The information provided on the web site does not necessarily reflect the most up to date or current information available. The performance and other information and opinions expressed herein and in the following materials are provided without any warranty of any kind. The investment objectives described above may be modified in the future. There is no assurance that any fund will meet its investment objective.