Good to let ultra-rich in on private equity deals

It is exciting to read about DBS Private Bank making private equity deals more accessible to those with the financial wherewithal to invest in them ("Ultra-rich DBS clients get own programme"; Tuesday).

As South-east Asia's largest bank, backed by a powerful brand and extensive market reach, it is well placed to be the intermediary of choice to match deals with these ultra-rich individuals.

This will substantially expand the pool of candidate funding available to companies with robust business models but that have fallen on bad times due to poor financial management and leadership.

Such companies have the potential to be turned around to become profitable again and be elevated to a higher level of operations by private equity investors, but may have gone under the radar as potential investment targets of traditional private equity firms.

This service provided by DBS Private Bank could plug this gap.

More local financial institutions should emulate DBS and step up to the plate in this regard. With more players in the market will come free-market forces to achieve efficiencies, including economies of scale and competitive fees.

Together with the equity crowdfunding initiatives the Monetary Authority of Singapore is currently studying, our nation, as an international financial hub, could truly be transformed into one that is also innovative and empowers businesses and entrepreneurs.

Woon Wee Min

A version of this article appeared in the print edition of The Straits Times on December 19, 2015, with the headline 'Good to let ultra-rich in on private equity deals'. Print Edition | Subscribe