19th November 2009, www.lankabusinessonline.com
A private equity group which is launching a 10-year closed-end fund in Sri Lanka said it will also start a listed stock vehicle with a shorter term horizon to invest in undervalued companies.
Leopard Sri Lanka, a part of Leopard Capital (Asia) which runs a 30 million US dollar private equity fund in Cambodia said it is targeting the Leopard Sri Lanka Value Fund for investors with a two year horizon.
The main Leopard Sri Lanka private equity fund will run for 10 years, with redemptions allowed only after 5-years.
Leopard Sri Lanka chairman Ranjith Fernando says there are smaller companies in the stock market or "hidden gems" which are trading at a discount to market.
Foreign investors usually invest in large liquid firms which are among the largest capitalized firms in the Colombo Stock Exchange, whose shares are liquid and easy to exit.
The Leopard listed equity firm will permit redemptions after two years.
"It is not a fund to track the index or buy the blue chips, our strategy is to find overlooked companies which our colleagues will research and unlock their value," says Douglas Clayton, who founded Leopard Capital Asia in 2007.
Leopard Sri Lanka has as managing partners Nirosh de Silva and G Ramanan, two Sri Lanka based with long year's of experience in the island's capital markets. De Silva had founded Orion Capital, a Colombo based investment firm.
The Leopard Sri Lanka Value Fund would be registered in the Cayman Islands.
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