How to Invest in Frontier Markets

Capitalist Exploits | 24 January 2013

Investing in frontier markets is a challenge due to lack of liquidity and significant set-up times. One way to circumvent these problems is to Invest in other people's expertise through a managed fund.

We work hard to associate ourselves with smart individuals where we can reciprocate value. This not only gives us opportunities to put capital to work, but provides us the ability to grow a powerful network filled with influential people.

One such person I have become friendly with is Thomas Hugger, COO & CFO of Leopard Capital, a frontier markets private equity fund we have discussed previously in these pages.

Thomas has had a global career, spending 27 years in private banking, where he specialized in managing portfolios of listed and unlisted equity investments. Further, he is a CFIA. His most recent venture is the formation of the Leopard Asia Frontier Fund (LAFF), a liquid investment vehicle focusing on Asia’s frontier markets.

I recently caught up with Thomas in Phnom Penh where we had a discussion about his fund, as well as some opportunities he sees right now in the countries LAFF is active in. Enjoy!

Pearl of Wisdom

7th Heaven Properties | 31 December 2012
The Caribbean Property Investor
By Douglas Clayton, CEO of Leopard Capital

As billions of dollars of foreign assistance pour into the “Pearl of the Antilles” driving economic growth, the CEO and Founder of pioneering private equity firm Leopard Capital explains why he believes Haiti is poised for growth and mutually beneficial investment opportunities abound

In crisis lies opportunity, states an old Chinese proverb. When it comes to Haiti, most outsiders comprehend the crisis part, having seen images and heard accounts of the grinding poverty, the devastating earthquake, the homeless tent dwellers and cholera outbreaks. An entrenched industry of non-government organizations (NGOs) dutifully highlights Haiti’s heartbreaks, eager to maintain the donation flow through their bureaucracies. While Haiti offers more plotlines than tragedy, pathos dominates its international narrative.

Investing in Asia's Frontier, With Eyes on the Horizon

The New York Times | 26 December 2012
By Ron Gluckman

Douglas Clayton, the founder and managing partner at Leopard Capital.

PHNOM PENH, Cambodia — Investors started poking around for deals here five years ago, as the war-torn country began to move past its legacy of genocide and coups. When the global financial crisis struck, Cambodia’s fast-growing economy crashed and the dollars flowing from abroad evaporated.

Douglas Clayton stayed put. In the midst of the crisis, he raised $34 million, starting the first investment fund focused on Cambodia.

“High risk also means the potential for high returns,” said Mr. Clayton, the founder of Leopard Capital.

Thomas Hugger: Only Frontier Markets Offer Uncorrelated Returns From A Troubled Global Economy

China Money Podcast | 15 October 2012

In this episode of China Money Podcast, guest Thomas Hugger, CFO of Leopard Capital, a private equity firm focused on investing in Asian frontier markets, discusses the successes and failures of his firm's investments in Cambodia, the impact on frontier markets from a slowing Chinese economy, and why frontier markets offer better risk-return profiles than emerging markets.

Listen to the full interview in the audio podcast, watch the shortened video version or read an excerpt.

INTERVIEW EXCERPT

Q: First give us a brief introduction of Leopard Capital?

A: Leopard Capital was founded in 2008. Our general goal is to make private equity investments in frontier markets. We've raised two funds so far. In March 2008, we raised our first private equity fund to invest in Cambodia. Another fund was raised to invest in Haiti. We are hoping to launch two additional funds to invest in Bangladesh and Bhutan this year.

Profile: Leopard Capital's Douglas Clayton

Asia Venture Capital Journal | 04 October 2012
By Susannah Birkwood

Leopard Capital CEO Douglas Clayton refused to let gun-wielding Cambodians distract him from setting up the country’s first private equity fund. He prides himself on being first on the ground in frontier markets

"You felt like you could get killed in the night and nobody would ever know."

This was Douglas Clayton's perception of Cambodia when he first visited the country as a tourist in 1991. Sixteen years later - despite having only been back on two occasions in the interim - Clayton established Cambodia's first private equity firm, Leopard Capital.

"I said that if in 16 years this country can completely transform from a very scary, dangerous place to a place where I could bring my family, in another 16 years it might be a modern country," he says by way of explanation for the move. When he first visited, the UN was going into Cambodia to enforce an election; the streets were unpaved, unlit and unclean, "and all these people were walking around with guns."

Leopard Capital hires Richard Intrator as Managing Partner and CIO for Cambodia

Leopard Capital - Press Release | September 03, 2012

Mr. Richard Intrator has joined Leopard Capital Cambodia Ltd as Managing Partner and Chief Investment Officer. Leopard Capital Cambodia Ltd. manages Cambodia’s first investment fund, the US$ 34 million Leopard Cambodia Fund which was launched in 2008. Mr. Intrator will be based in Phnom Penh, Cambodia.

Mr. Intrator has a long and distinguished career in finance, private equity, management consulting, and operations. Prior to joining Leopard Capital he was the Executive in Residence at Stamford International University (Thailand). Mr. Intrator earlier held senior roles with IMAX, Petry Media (a portfolio company of Patriarch Partners), PaineWebber, Kidder, Peabody, & Co., and Booz, Allen & Hamilton. His past Board memberships include The Lighthouse International (Vice Chairman), Juniper Content Corp., and Golden Books Family Entertainment. Mr. Intrator is a Certified Public Accountant, and has a B.S. from the Wharton School and an M.B.A. from Harvard Business School.

Leopard Capital on the Haitian Frontier

Parlons Affaires | August 20, 2012

In today’s risk-averse world, a private equity fund that actively seeks investments in developing countries sounds like an oxymoron. This contradiction, however, is the essence of Leopard Capital’s philosophy. Leopard prides itself on being a pioneer investor in pre-emerging economies.

Since 2007, Leopard has successfully raised funds for telecommunication, water, power, and housing enterprises in Cambodia and has been steadily building its funds to make investments in other Asian countries, such as Laos, Myanmar, and Bangladesh. When Leopard turned its eye towards the Americas, it found Haiti to be a natural candidate for its portfolio.

Leopard Capital Wins Acquisition International 2012 M&A Award

Leopard Capital - Press Release | August 02, 2012

The publication of the 2012 Acquisition International M&A Awards marks the culmination of a 6-month search for the world’s best M&A teams

Cambodia-based Leopard Capital has been awarded a prestigious “Private Equity Firm of the Year” designation in the 2012 Acquisition International M&A Awards. The award was presented following a 6-month investigation to determine the top Mergers & Acquisitions teams in the world. 

Acquisition International’s Press Release states “The Acquisition International M&A winners have rallied well from boom to bust, they proved resilient and are superb examples of excellence. Key to their success has been, more than ever, the ability to adapt and act creatively in business and their exceptional performance is expected to continue into next year and beyond.”

Leopard Capital launches pioneering Leopard Haiti Fund to Invest in Haiti’s Private Sector

Leopard Capital - Press Release | July 16, 2012

Douglas Clayton, CEO of Leopard Capital and Rachel Robbins, Vice President and General Counsel of IFC sign IFC’s commitment to Leopard Haiti Fund at IFC Headquarters, Washington, DC

Leopard Capital is pleased to announce the successful initial closing of Leopard Haiti Fund (LHF).  LHF is the world’s first private equity fund to operate and focus exclusively on Haiti since the 2010 earthquake.

The fund seeks to raise USD 40 to 75 million to invest in businesses in Haiti.  The first USD 20 million of this target has now been committed by three international development banks:  

• $8.5 million by International Finance Corporation (IFC);
• $8.5 million by Netherlands Development Finance Company (FMO), through MASSIF, a dedicated fund for SME development that FMO manages for the Dutch State;
• $3.0 million from the Multilateral Investment Fund (MIF), member of the Inter-American Development Bank (IADB) Group.

Reviving Cambodia

By Drew Wilson, 13 April 2012

New Indochina fundraising includes Cambodia, where an investor-friendly government is trying to reverse decades of ruin.

The pioneer spirit is still around. Namely, Leopard Capital and Dragon Capital, which have recently revealed fundraising efforts that include Cambodia. The fragile nation was decimated by the Khmer Rouge, who ruled by torture and mass extermination from 1975–1979.

Cambodia’s recovery from that period is accelerating. In 2011, GDP growth was 6.7 percent and 6.5 percent is expected in 2012, according to the IMF. People, money and ideas are also flowing between Vietnam, Cambodia and Laos, creating opportunities for regional integration, sources say.

The government allows 100 percent foreign ownership and encourages private equity investment to help revive industry, says Doug Clayton, chief executive of Leopard.