#Hong Kong #Annum Capital #Turoid #Deane Consulting

New Report: Early Bird on Tech Investment for Asian Family Offices

A recent report titled "Early Bird: A Practical Guide for Asian Family Offices Investing in Technology Through Private Markets" was released to shed light on how family offices in Asia can successfully navigate the complexities of technology investments. Co-authored by Annum Capital, Deane Consulting, and Turoid, this report draws from the extensive expertise of Annum Capital in private markets and integrates insights from other prominent institutions in the field.

Key Findings of the Report

The report reveals significant changes in the landscape of technology investments. Recently, tech giants are opting to remain private for longer periods, extending 10 to 14 years or more. An astonishing 90% of their value often compounds unnoticed, as these firms develop behind closed doors. The traditional Initial Public Offering (IPO) has morphed into a late-stage liquidity event instead of being seen as the gateway for growth, creating urgency for family offices to act as early birds to harness potential value.

One of the standout revelations is that the most lucrative private tech deals face structural supply constraints. This requires family offices to understand that financial resources alone are insufficient. They need to infuse perpetual capital, leverage operational agility, and cultivate a solid reputation in deal-making to rise in the allocation hierarchy, which typically favors established shareholders, VC funds, and strategic investors.

Navigating Information Gaps and Structural Complexity

The report underscores the importance of overcoming information gaps and navigating the complexities inherent in data-driven investment decisions. Rushed due diligence processes could lead to overlooked risks—multi-layered opacity and excessive fees can erode potential net returns. Family offices are urged to invest time and negotiation efforts to protect their interests and minimize risks.

Regulatory Challenges

Regulatory shifts are another critical concern highlighted in the report. With the multiplying laws in the U.S. and Mainland China affecting investment accessibility, family offices must stay informed and adapt their strategies accordingly. These rules can impact entry and exit channels, sometimes even with retroactive effects, as evidenced by recent landmark cases. Conversely, the supportive infrastructure in Hong Kong presents an advantageous landscape for family offices to carve out successful paths to investment and exit strategies.

In conclusion, as the technological landscape continues to evolve, Asian family offices must adapt to these shifts by leveraging the insights provided in the "Early Bird" report. It serves as a valuable tool, paving the way for more effective investing in private markets and maximizing returns on technology investments.

For further details, the complete report can be accessed here.

About the Authors

• - Aaron Sung: Head of Asset Management at Annum Capital, Aaron leads notable funds in private markets and is an advocate for AI in the family office domain.
• - Andrew Deane: Founder of Deane Consulting, he specializes in strategic development within the wealth management industry, focusing on family office trends and AI technology.
• - Nick Wong: CEO of Turoid, Nick innovates at the intersection of finance and technology, enhancing how family offices and private wealth institutions operate seamlessly.

This report marks a significant contribution to understanding and navigating the new realms of tech investing for family offices across Asia.