The experts you need when starting a private equity firm
As a leading global financial hub, Singapore has captured the attention of the economic elite.
From investment bankers to entrepreneurs, family offices to government funds, Singapore offers many opportunities thanks to its robust regulatory framework, strategic location and favourable tax system.
Furthermore, the ease of establishing a business in Singapore has also earned it one of the highest global ‘ease of doing business’ scores.
Private equity is one such industry that’s noticed, with Singapore becoming a central hub for private equity fund managers seeking opportunities in Southeast Asia.
As the country’s reputation for financial stability and prosperity continues to rise, so too does the growth of its private equity market. The deal value in the Singapore private equity market is projected to reach US$765.90 million by the end of 2024. It’s expected to show an annual growth rate of 27.80%, resulting in a projected total amount of US$978.80 million by 2025.
If you’re considering Singapore as an investment destination, you should be. With many international fund managers already establishing a presence in Singapore and broadening their focus, it’s time to strike while the iron is hot.
If you’re wondering how to start a private equity firm, read on.
Let us step you through the talent required in the private equity area – who you need, why you need them so you can be rest assured you can sharpen your competitive edge.
Related: Why set up a family office in Singapore?
As an investment management company that purchases, manages and eventually sells companies, private equity firms have proven to be lucrative ventures in Singapore. According to Andrea Wong, Managing Director at Robert Half Singapore, private equity activity has remained strong in the face of challenges.
She says, “Despite a volatile 2023 climate, private equity activity grew in certain Singapore sectors. The biggest growth I observed was in the sustainability and energy space, as well as consumer-centric areas like healthcare and education.”
“We tend to see investors drawn to prospects aligning with international mega-trends and Singapore’s local strategic priorities. Essentially, the role of a private equity firm is to provide promising companies with financial backing and investment. Typically, they will acquire ownership stakes to drive growth, optimise operations or restructure the business. The long-term goal is to profitably exit these investments, generating positive returns for their investors and themselves,” says Andrea.
Private equity firms raise capital from institutional and accredited investors, such as pension funds, endowments and high-net-worth individuals, which they then pool into funds to invest in alluring companies.
Andrea says Singapore is brimming with investors, which has boosted its allure as a destination for private equity firms.
She says, “Experts predict that financial wealth in Asia (excluding Japan) could outstrip the US by 2025. Private equity firms rely on investors who can commit significant capital for extended periods - Singapore is certainly not short on wealth, making it the perfect base.”
Don’t be fooled, a comprehensive business plan and healthy capital aren’t the only things you need when starting a Singapore private equity firm.
Andrea says finding the right talent goes a long way in establishing and elevating your firm.
She says, “If you’re looking at how to start a private equity firm, know that people are powerful. Singapore’s private equity market is dynamic yet challenging. The right team will help to navigate the terrain, making it easier to stay competitive.”
“My recommendation is to build a strong talent network – it can make all the difference when scaling a firm. Focus on recruiting a skilled local team that understands the market, which is where Robert Half can help. Diverse experience and expertise will enable your firm to stay disciplined in investment strategies, build regional networks and maintain strong legal and compliance support,” says Andrea.
Let’s take a look at the key professionals that you’ll need when starting a Singapore private equity firm.
An Investment Analyst is responsible for supporting the investment team in identifying, evaluating and managing investment opportunities. They conduct comprehensive research on potential investments, including financial analysis, industry analysis and company valuations.
Key responsibilities include:
Conducting research and financial modelling to help the firm make informed decisions
Assisting in the due diligence process
Structuring deals
Monitoring and reporting on the performance of portfolio companies
Communicating with stakeholders
A Portfolio Manager oversees the firm’s investment portfolio, making decisions regarding investments, divestments and risk management.
A Portfolio Manager works to manage and optimise the firm’s investments in portfolio companies.
Key responsibilities include:
Devising investment strategies and processes relating to portfolio companies
Monitoring portfolio performance and managing risk
Harnessing growth opportunities to boost the value and performance of portfolio companies
Conducting market research and analysis
Communicating with investors and senior leaders about portfolio company performance and strategic initiatives
Managing regulatory requirements with authorities like the Monetary Authority of Singapore (MAS)
Serving as the primary liaison between a firm and its investors, an Investor Relations Manager helps broker positive partnerships. Their role is crucial in fostering transparent communication and maintaining investor confidence.
Key responsibilities include:
Updating investors on fund performance, portfolio developments and market conditions
Assisting in raising capital
Compiling performance reports for key stakeholders
Building and maintaining relationships
Ensuring compliance and transparency in communications
Facilitating investor onboarding
In Singapore’s complex realm of private equity, a General Counsel is an inherent part of any successful firm. These essential experts work to ensure that the firm operates within the guidelines of Singapore’s financial and legal regulations, providing legal advice and ensuring compliance with relevant laws and regulations.
Key responsibilities include:
Mitigating potential legal disputes or regulatory issues
Drafting and reviewing fund formation documents
Conducting due diligence on prospective deals
Managing regulatory filings with authorities like the MAS
Managing risks associated with the firm's operations, investments and partnerships
Firms look to a Compliance Manager to ensure that they are operating within the framework of legal and regulatory requirements. In a tightly regulated ecosystem like Singapore, a Compliance Manager is pivotal in ensuring that the firm mitigates risk and regulatory violations.
Key responsibilities include:
Monitoring compliance with laws, regulations and internal policies to avoid breaches and penalties
Remaining abreast of regulation changes and compliance laws set by entities like the MAS
Developing and implementing policies to prevent legal breaches
Conducting regular audits
Ensuring that the firm’s practices comply with anti-money laundering (AML) laws, data privacy regulations and other legal requirements
Conducting training programs for staff to enhance awareness of regulatory requirements and internal compliance policies
A CFO works to ensure the firm's financial health and strategic growth. Overseeing financial matters, including fund management, reporting and compliance, a CFO helps the firm to operate efficiently while maximising investor returns.
Key responsibilities include:
Budgeting
Investor relations and investor reporting
Regulatory management
Fundraising
Strategic planning and decision-making
Risk management
Portfolio support
A Finance Manager works to ensure the firm's financial health and strategic growth.
Overseeing financial affairs, the Finance Manager helps to align the firm’s financial systems, reporting and strategic planning with business objectives.
Key responsibilities include:
Managing and overseeing the financial elements of the firm
Facilitating comprehensive and cohesive financial reporting and analysis
Assisting in financial analysis, modelling and accounting
Conducting budgeting and forecasting
Adhering to regulatory requirements
Monitoring and managing the firm’s cash flow and liquidity
Supporting investor management
If you’re wondering how to start a private equity firm, start by making people your priority.
A Human Resources Manager is the key to finding (and managing) the human capital within the fund – your employees!
Key responsibilities include:
Developing and overseeing recruitment, onboarding and training strategies
Managing relationships with recruitment agencies and local talent
Aligning hiring processes with the firm’s growth and cultural goals
Designing, implementing and managing effective processes around compensation, benefits, performance management, development and training
Ensuring HR operations adhere to relevant regulations and labour laws
Leading initiatives around employee relations, organisational development and workforce planning
Overseeing workplace health and safety programs to ensure a safe and inclusive environment
Overseeing the day-to-day operations of the firm, an Operations Manager’s role is fundamental to operational efficiency.
Their responsibilities span across administrative, financial and strategic domains to keep the firm aligned with its goals.
Key responsibilities include:
Streamlining the firm’s operational and investment processes
Providing fund administration support
Ensuring the firm complies with regulatory requirements
Implementing technological integration (i.e., portfolio management systems, CRM tools and data analytics platforms)
Coordinating collaboration between internal teams
Providing portfolio monitoring support to Portfolio Managers
Providing investor support
Contributing to strategic planning
If you’re wondering how to start a private equity firm, you might be unsure about where to begin. Andrea says it’s important to prioritise talent acquisition.
She says, “Talent is fundamental to the success of your firm. The savviest firms make a conscious effort to delve deep into what prospective candidates can offer. Don’t be afraid to ask direct questions about their unique value proposition. For example, a strong network of contacts in the investment community can be invaluable for sourcing deals and building relationships with investors.”
“Depending on the firm's focus, having professionals with specific industry expertise can be beneficial. For instance, if your firm focuses on technology investments, engaging professionals with tech experience would be advantageous.”
Andrea believes local experts are the key to smooth operations, strategic investment decisions and sound compliance.
“Professionals with experience in the Singapore financial market should possess a deeper understanding of Singapore's private equity regulatory framework. This is essential in ensuring compliance and avoiding legal issues,” says Andrea.
If you want to optimise the recruitment process, consider connecting with Robert Half. With a range of private equity recruitment solutions available, we’ll work with you to simplify the process and get your firm up and running sooner. Our team of dedicated experts will help to recruit the most skilled local candidates to lead your firm forward.
There’s never been a better time to step into Singapore’s private equity arena. Sure, business plans and capital are important, but if you’re wondering how to start a private equity firm, start with the right talent. A carefully curated team will be your secret weapon when it comes to establishing your firm, scaling it and helping it succeed.
Related: How to start a venture capital firm with the right expertise
What are the most effective recruitment strategies for attracting top talent to a private equity firm in Singapore?
Highlighting opportunities for personal and professional growth
Fostering targeted outreach to connect with top candidates (i.e., industry-specific job boards, networking events and partnerships with leading universities)
Competitive compensation packages
Clear career progression
A robust company culture
Strong employer branding
How can we retain key team members and prevent attrition?
Competitive compensation packages
Clear career progression
A robust company culture
Performance-based incentives
Ongoing professional development opportunities
Work-life balance
What are the challenges of building a team in a competitive market like Singapore?
Fierce competition for top talent
High salary expectations
Limited pool of experienced professionals with expertise in niche sectors
Ensuring compliance with Singapore’s stringent regulatory environment
Balancing technical proficiency with adaptability and a strong cultural fit
