Download Leopard Cambodia Fund

1.
Why Cambodia?
2. A Vision of the Future
3. Leopard Cambodia Fund
2
• Location
• Geography
• Resources
• Attractions
Asia’s
Sunrise
Economy
• Demographics
• Infrastructure
• Stability
• Policies
• Opportunities
• Stockmarket
• Drawbacks
3
Heart of Asia
4
A Textbook Country:
• Compact, logical shape
• Not landlocked: coastline
• Long, navigable, connected rivers
• Massive lake
• A few mountains
• Populous, wealthier neighbors
• Abundant farmland and water
• Resource rich and underpopulated
• Few natural disasters
• Spectacular tourist attractions
• “Nation state” (religion, ethnicity, etc.)
5
Heart of Asia
• Crops: Rice, Cassava, Sugar, Cotton, Maize,
Soybeans, Sugar, Vegetables, Pepper
•
Trees: Rubber, Oil Palm, Coconuts, Fruit,
Cashew, Acacia, Teak
•
Aquaculture: fish, prawn farming
•
Livestock: poultry, pork beef
•
Mining: Gold, Iron, Bauxite, Nickel, Zinc,
Copper, Lead, Gems, Limestone
•
Energy: Oil and Gas, Coal, Hydropower,
Renewables (solar, biomass, biogas, etc.)
6
Mineral deposits
• Angkor heritage
• Charming
• Virgin beaches & islands
• Exotic
• Casinos
• Undiscovered
• Colonial river towns
• Inexpensive
• Eco-tourism / wildlife
• Accessible
• Adventure travel
7
• 60% under 25
• Average age: 21
• 300,000 new workers/year
• Minimum wage: $56/month
8
• PAS seaport upgrading
• New seaport(s) planned
• New river port will connect PP
with new deep sea ports in HCMC
• Sihanoukville international airport (?)
• Roads and bridges
• Railroad
• Power lines, dams and plants
• Wireless coverage
• Internet fiber backbone
9
2007 and 2008 (Source: Political & Economic Risk Consultancy Ltd.)
8
7
6
5
4
3
2
1
0
10
11
• 20% flat income tax
• 100% foreign ownership
• 9 year tax incentives
• Foreign managers welcome
• No price controls
• Free flow of capital
• Simplified tariffs
• No Forex risk; use USD
• Duty-free exports to
EC, Japan, etc.
• WTO, AFTA, ASEAN
trade benefits
12
Financial Services
 Banks / Microfinance
 Securities Brokerage
 Insurance
Property Development
 Residential
 Commercial
 Industrial
Tourism
 Hotels
 Entertainment Attractions
Manufacturing / Processing
 Building materials
 Beverages
 Fruit processing
 Rice mills
 Animal feed mills
Agriculture Production
 Crops (rice, soybeans, corn, sugar)
 Trees (rubber, palm oil, cashews, teak)
 Fruits and vegetables
 Meat and Dairy
 Aquaculture (prawns, fish)
Natural Resources
 Oil and gas
 Mining
Infrastructure
 Roads and Rail
 Electricity
 Wireless telecoms
 Broadband internet
Services
 Retailing / Fast food
 Education
 Health Care
13
• SEC established, regulations being drafted
• Korea’s KRX owns 45%; funding and training
• CamKo City donating an office building
• Launch in late 2010 (?)
• Listing candidates: banks, telecoms, SOEs,
foreign-owned companies
14
• Small, dispersed domestic market
• Expensive electricity, transport,
telecoms, and Internet
• HR limitations
• Dispute resolution
• Informal charges
15
1.
Why Cambodia?
2. A Vision of the Future
3. Leopard Cambodia Fund
16
• 1200 Years Ago: Angkor Empire rules the region
• 80 Years Ago: French rate Phnom Penh
“The loveliest city in Indochina”
• 45 Years Ago: Singapore’s Lee Kuan Yew
visits Phnom Penh to study city planning
17
• Khmer Rouge take over
• Back to “Year Zero”
• Cities emptied
• Elites liquidated
• Money abolished
• Infrastructure dismantled
18

A Nation at Peace

Repopulated with a New Generation

Stable Government

Safe to travel anywhere

Phnom Penh being modernized

Capital inflows

Investment cycle begins
19
• 22m people, average age 30
• Region’s elite tourist destination
• Major commodities exporter
• Trade surpluses / foreign reserves
• Modern infrastructure and healthcare
• Top 3 richest per capita in ASEAN
• Cambodia cuisine sweeps the world (?)
20
Cambodia
Thailand
Malaysia
GDP ($ Billion)
8.6
245
186
GDP Per Capita ($)
615
3,776
7,509
Population (mn)
14
65
25
Population - Median Age (years)
22
33
25
181,000
514,000
330,000
77
126
76
Stable
Unstable
Uncertain
20%
30%
28%
100%
25-49%
30%
Bank Assets / GDP
39%
110%
184%
Mobile Phone Penetration
18%
78%
92%
Oil Dependency Per Person (Barrels /Year)
0.1
5.2
7.3
Land (Sq Km)
Density (People per Sq Km)
Govt. Stability
Corp. Income Tax
Banks’ foreign ownership limit
21
1.
Why Cambodia?
2. A Vision of the Future
3. Who We Are
22
Founded in 2007 by Douglas Clayton to manage investment funds in Asia’s
frontier economies
A partnership of 15 veteran investment experts, including:
• Marc Faber (voted one of the World’s 5 Wisest Investors – Bloomberg)
• Jim Walker (voted Asia’s #1 Economist, 11 consecutive years –Asiamoney)
• Gordian Gaeta, former Managing Partner (Asia) at Booz Allen Consulting
• Andrew Fraser, retired Chairman of Baring Securities
• Henry Looser, retired Head of Private Banking at Bank Julius Baer
• Terry Mahony, former Chief Investment Officer of HSBC Asset Management
Cayman-domiciled, with offices in Hong Kong, Phnom Penh, and Colombo
A Hong Kong-based subsidiary, Leopard Capital Ltd. is licensed by the
Hong Kong Securities and Futures Commission (SFC) for Type 4
(Advising on Securities) and Type 9 (Asset Management) activities
In 2008 Leopard Capital launched Leopard Cambodia Fund
In 2010 Leopard Capital will launch Leopard Sri Lanka Fund
23
Asia’s Frontiers
Cambodia
Sri Lanka
• Bangladesh
• Laos
• Kyrgyzstan
• India
• Vietnam
• Mongolia
• Burma
• Thailand
• Pakistan
• Philippines
• Indonesia
• Bhutan
• Nepal
• East Timor
24
Cambodia’s premier investment team
• First Mover, with a 2 year head-start over
any other investment funds.
• Focused on Cambodia, with its key principals
living here.
• Unrivaled connections in Cambodia and
across Southeast Asia ensure constant deal
flow.
• Layers of expertise across our Investment
Team, Investment Committee, Advisory
Council, and Board of Directors.
25
Right place
Right time
Right team
Chief Executive Officer: Douglas W. Clayton, 48, has 23 years’ experience in emerging markets
investments. As Director and Chief Investment Officer of Knight Asia Group, Mr. Clayton helped manage
Knight Pacific Fund and Knight Thai Strategic Investments. He was Chief Executive of the Thailand office
and then of the Latin America regional division of CLSA Securities, and of the Singapore and Malaysia
offices of Indosuez WI Carr Securities. He also founded and managed Abacus Equity Partners (Thailand), a
private equity advisory firm. Mr. Clayton holds a MM degree (Sasin), and BA (Cornell).
Chief Investment Officer: Scott A. Lewis, 40, has 15 years’ experience in investment banking and private
equity. He was a Director of Merrill Lynch’s Global Energy & Power investment banking group in London,
Houston and Calgary, and earlier was a member of the investment teams of First Reserve Corp., a private
equity firm focused on the global energy sector and Sterling Group, a private equity firm investing in the
US petrochemical, agribusiness and basic manufacturing industries. Mr. Lewis has a BBA in accounting with
High Honors and a MPA from the University of Texas at Austin.
Chief Portfolio Manager: Kenneth M. Stevens, 48, has 18 years of operational and investment experience
in Southeast Asia. After serving as Head of Research and Investment Banking Executive at CLSA Securities in
Thailand, he spent ten years developing his own group of business ventures in Thailand and Vietnam. His
operational experience includes project design, construction and management; product distribution;
aquaculture production; and service businesses. Mr. Stevens holds a MIM (Thunderbird) and a BA (Cornell),
and is a Chartered Financial Analyst.
Chief Operating Officer: Thomas E. Hugger , 46, spent 26 years in private banking, where he specialized
in managing portfolios of listed and unlisted equity investments. His most recent position was Executive
Director and Head of Investments at LGT Investment Management (Asia), Hong Kong. Earlier he held
investment positions at LGT Bank (Zurich) and Bank Julius Baer in Zurich and Hong Kong. Mr. Hugger is a
CFIA – (Federal) Certified Financial Analyst and Investment Adviser – Switzerland, and a Certified EFFAS
(European Federation of Financial Analysts Societies) Financial Analyst.
26
• 8 year life (6.5 years left)
• US$ 31 million raised so far, from 100+ international investors
• Half invested in five projects of $ 1.3 - 5.0 million each
• Invests in both startups and existing businesses
• Can hold majority or minority shareholdings
• Can invest in nearly all sectors of the economy
• Expects audited accounts, tax compliance, corporate governance
27
Agri-business
Rice plantation
• Rice Mill
Production
Beer brewery
• Mineral water bottler
• Shrimp processing
Telecom
• Mobile service operator
• WiMax Broadband Internet
• Online payments
Power
 Rural power transmission
Financial services
• Rural/SME focused bank
• Micro-finance Institution
Property
 Residential condos
• Office building
• Hotel
28
Building a
portfolio
of basic
industries
For further details, please contact:
MR. DOUGLAS CLAYTON
Chief Executive Officer
Leopard Capital
Email: [email protected]
29