Ideal time for private equity for finance company revival
Private equity investment is now active in Asia with global mega funds seeking to infuse capital or resort to buyouts enabling Sri Lankan companies to revive their business activities affected by the economic downturn, asset management specialist Dhakshitha Bogollagama said.
Billions of dollars are available for growth capital investments, when funds take a minority or majority stake in a business and Sri Lanka should also look into such investments in the face of the foreign exchange crisis, he told the Business Times in a phone interview.
Mr. Bogollagama, current Chief Executive Officer (CEO) of Helios Ventures (HV), noted that his company and its affiliates have consistently been investing in the country and have provided many employment opportunities and assisted companies with much needed equity support.
HV and its affiliates are on the lookout for suitable companies and assets including those that are distressed to acquire or partner.
It will help revive stressed enterprises to be bankable again, help banks and finance companies to improve their liquidity and the economy to regain stability,
This investment management company has the global connectivity to raise capital and its partners are regulated by the Monetary Authority of Singapore.
HV is currently in discussions with the Government and private sector with a view of investing over US$ 3 billion into strategic development projects in the country, he revealed.
The company and its affiliates have consistently been investing in the country and have provided numerous employment opportunities and assisted companies with much needed equity support.
Global private equity firms are willing to invest in countries like Sri Lanka which has potential for future growth.
HV is using its contacts in many right countries in Asia and the Pacific as well as in Europe to make their investments at the right time in the country, he added.
After 17 years of being overseas in the UK, US and working with the Australia and New Zealand Bank in Singapore and other asset management firms as Vice President and Head of South Asia, Mr. Bogollagama is now serving as the CEO of HV as he has a passion for Sri Lanka.
HV is an Investment Management firm registered with the Securities and Exchange Commission and an affiliate of a Registered Fund Management Company regulated under Monetary Authority of Singapore.
HV was instrumental in bringing in initial investment to acquire and recapitalize the Lanka Credit and Business Finance (LCBF) in 2014 investing over $1.65 million and paid over 2200 depositors and cleared the liabilities which paved the way for the recent Initial Public Offering and the revival of the company.
This finance company is now continuing its operations successfully following this new capital and investors with a strong new efficient management brought in to revive the company with regulatory capital levels being strengthened, thereby meeting the core capital levels envisaged by CB, he said.
It has been able to save the assets that were to be seized by the banks by paying the loans and rescheduling the payments, he added.
After carefully studying the company which included its recoveries, asset portfolio and payments due to depositors, a new strategy had been devised.
Mr. Bogollagama noted that he was backed by a visionary team in Singapore who have the connectivity, handle large projects globally and with experience in restructuring companies.
LCBF commenced trading on
the Colombo Stock Exchange on November 16, 2021.
The listing follows a successful Initial Public Offering by the company, through which it raised over Rs. 500 million and was oversubscribed on the initial day of its offer itself.
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