The Business Times
business-time-50
SGSME logo
SUBSCRIBERS

New wave of SME buyers mining for ‘diamonds in the rough’ in Singapore, Asean

Unlike traditional private equity firms, these niche players have an appetite for micro to small buyouts and longer-term holds

Summarise
google-preferred-sourceAdd BT as a preferred source
Paige Lim

Paige Lim

Published Wed, Apr 30, 2025 · 05:00 AM
    • Gen Capital Partners' co-founders Eric Koh (left) and Zachary Lee. The company aims to partner “operators” – individual would-be entrepreneurs – to buy out profitable regional businesses whose owners are looking to retire or exit.
    • Gen Capital Partners' co-founders Eric Koh (left) and Zachary Lee. The company aims to partner “operators” – individual would-be entrepreneurs – to buy out profitable regional businesses whose owners are looking to retire or exit. PHOTO: TAY CHU YI, BT

    [SINGAPORE] New types of buyers are emerging for small and medium-sized enterprises (SMEs). Unlike traditional private equity (PE) firms, these niche players are open to smaller deals and have longer, flexible investment horizons to find and polish these hidden, diamonds in the rough.

    SMEs tend to be overlooked in the mergers and acquisitions (M&A) space. Middle-market PE firms typically pursue deals between US$50 million and US$500 million, while large-cap firms’ deals can exceed US$5 billion.

    PE firms also strive to exit investments within three to seven years to realise their returns.

    Singapore SMEsM&APrivate equitysuccession planning

    TRENDING NOW

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    ​OCBC head of global consumer financial services Sunny Quek says: “All of us (financial institutions) have a wealth strategy. What’s really going to differentiate one bank from another is the execution."

    OCBC consumer banking chief Sunny Quek aims to double wealth business by 2029

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    Hengli Petrochemical's refining complex in China's Dalian in 2018.

    Hengli’s ex-Singapore unit dismisses staff after US sanctions, at risk of being wound down: sources

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More