In a short period of three years, SMU Asia Private Equity Club’s (APECS) Leveraged Buyout (LBO) Case Competition has grown from strength to strength, with more than 25 teams from across Asia vying for the grand prize this year!
Organised by SMU APECS in collaboration with the Chartered Alternative Investment Association (CAIA), the competition aims to build students’ interest in private equity by providing an intellectually stimulating environment for them to conduct ‘hands-on learning’ and to network with industry professionals and overseas peers. With over 90 teams having taken part in the competition over the past three years, the APEI LBO case competition has truly become Asia’s biggest LBO case competition.
In this preliminary round, teams were tasked to act as a PE firm themselves and present their strategic case to assess the viability of a leveraged buyout of AmorePacific Corporation. They were to propose a deal and financing structure, as well as a business roadmap that will improve the company’s performance during the holding period. Five finalists teams were then shortlisted and invited to present their case at the finals held at SMU. The finalists teams hailed from SMU, NUS, NTU, INSEAD and HKUST.
[Photo: First Runners-up, Team Absolute Capital, consisting of final year SMU students (L-R) Charles Phan (Economics), Chan Jun Hao (Business), Wilson Chua (Economics), Sylvester Yeo (Economics). They are photographed here with Ms Genevieve Heng (far right)]
At the finals held on 18 Mar 2017, the judging panel, comprising SMU Assistant Professor of Finance Liang Hao; Ms Veronica Eng, Founding Partner of Permira; and Ms Genevieve Heng, Director of Anthem Asia Limited, challenged the participants’ propositions. They were impressed by each team’s in-depth analysis and their ability to argue their assumptions and propositions. However, Team LFL, a mixed team comprising students from SMU and NUS, were clearly a cut above the rest. They were declared the champions of the APEI LBO Case Competition 2017, winning $5000 and a CAIA Level I Scholarship.
On their win, team leader, Yikai Chia, said, “The case was an incredibly challenging one, as we had to work under tremendous time pressure in analysing the cosmetics industry, one that we lacked the relevant experience in. Our team took a slightly different approach as compared to the other teams, focusing mainly on the post-LBO strategies that would help facilitate value creation for our client. We believe that our in-depth analysis, coupled with well-tailored strategies, allowed us to differentiate ourselves and impress the judges. Our team would like to use this opportunity to thank those who have supported us throughout the case competition. And to the event organisers, thank you for your help in coordinating this wonderful event.”
SMU’s Team Absolute Capital and HKUST’s Team Capital Partners were in second and third positions respectively, winning cash prizes of $3000 and $2000 each.
[Photo: Second Runners-up, Team HKUST Capital Partners from HKUST Business School, represented by (L-R) Lai Kai Ching Justin (Accounting), Wong Shun Kit Charles (Risk Management and Business Intelligence), Cheng Siu Yau Jason (Finance) and Patrick Chan (MBA), who was unable to attend the finals. The team is photographed here with Ms Veronica Eng (far right).]
In conjunction with the case competition, APECS also hosted the Private Equity Conference where the judges and other distinguished speakers, including Dato’ Kunal Chahl, Senior VP of Hera Capital, and Mr Sanjay Chakrabarty, Founder and Managing Partner of Capital Square Partners, shared their experiences and insights into the changing trends in PE.
Mr Hau Koh Foo, Director of the Institute of Innovation & Entrepreneurship at SMU, complimented the organising committee for the successful event. “This competition aims to gather the brightest and the most passionate students in private equity from around the world, and I am excited to see the overwhelming response. Good work by the APECS student organisers in running a successful competition," he said.
[Photo: A group shot of the LBO CC Finalists, Judges, Speakers and APECS organising committee.]
[Featured photo: The Champions, Team LFL represented by (L-R): Jake Lau Zhi Wei (NUS Business School, 3rd year), Chia Yikai (NUS Business School, 3rd year), Jack Zhan Nanhong (SMU Accountancy, 3rd year) and Tan Kai Siang (SMU Business, 4th year).]
