The financial carnage that ripped apart U.S. financial markets leading to a string of bailouts and bankruptcies, have led many in the region to seek security in the belief that Asia’s relatively closed markets are safe.
, a New York-based private investment firm that focuses on the media and communications sector, is now foraying into Asia and has already set up an office in Hong Kong. The new office is expected to enhance the firm’s ability to invest and expand in the Asian market. The private equity firm is very upbeat on India and China in their commitments. Edward Sippel, a managing principal of Quadrangle, heading the Hong Kong office told Asian Investor, “With respect to volume of deals, we are seeing the largest number of deals in China and India
Quadrangle sees this as a good time to enter Asia. In the wake of the current liquidity crunch, where assets prices are falling and IPO’s are difficult to go by , promoters looking for finance to fund their business plans are increasingly looking at private equity as a source of capital.
The sectors Quadrangle focuses on are still high-growth across Asia and companies in these industries still require capital to fund that growth; the current global liquidity crisis in the financial markets gives these companies few options to fund that growth.
“Given Quadrangle does not have any existing investments in Asia we are in the unique position of being able to focus 100% of our time on sourcing attractive opportunities and not portfolio management in today’s challenging environment,” Sippel told the Asian Investor.
Quadrangle’s investments include: men’s lifestyle media company Alpha Media Group; US cable operator Cablevision; North America and Latin America movie theatre operator Cinemark; specialised professional website provider Dice Holding; motion picture producer and distributor Metro-Goldwyn-Mayer Studios; Spanish alternative telecommunications operator ONO; and major German commercial television broadcaster ProSiebenSat.1.