Let's prove working together creates value first

Matsu Partners ("Matsu") is a privately-owned entity that invests in SMEs in South-East Asia, and selectively, advises entities on AI use cases of interest. 

When Investing

Our approach is unique as we work alongside owners before a transaction closes to prove what better looks like. Being digitally native, this includes implementing AI and operational measures that can demonstrate an improvement in customer sales and profitability within 90 days.

This approach proves what can be achieved from a longer term partnership, where both values and culture align.  When combining an SME's industry-leading knowledge with our function expertise in driving change across large corporations, this provides the foundation for unlocking further growth. 

We have three key principles:

  • Partnership: Our model is based on working with owners to realise the full potential of their business. Their industry expertise combined with ours is 1+1 = 3.
  • Empathy: This starts with caring for employees - aligning, incentivising, and sponsoring people to realise their potential - a happy workforce breeds success.
  • Technology and Data Science: This is core to our DNA - as this can propel a small business into a leading competitive position. We are operators and have used these techniques to find new customers, realise further revenues from existing customers, and significantly reduce internal admin and paperwork. 

When Advising

Given our founder's background as Head of Data Science value creation for a leading global private equity firm, on occasion, we will also advise entities on advanced AI use cases of direct interest. This typically applies to Investors (Limited Partners) and their portfolio holdings. 

Investment criteria

When examining an investment, we pursue one of two pathways:

Pathway 1:

  • A business with annual profitability of > US$2m

Pathway 2: 

  • Revenues of US$1m+ per annum with owners open to combining with other firms to build a bigger company

Criteria important to us:

  • Ownership: We start with controlled minority positions, but are open to 100% if an owner wishes to sell their business outright
  • Management: Partnering with owners to unlock growth. For majority ownership, a viable middle management team needs to be in place 
  • Sectors: Business Services, Education, and Healthcare. We are open to selectively looking at other sectors
  • Geographies targeted: Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines, and Hong Kong 
  • Performance: 3 years of revenue growth and stable EBITDA margins
  • Valuation: Where sellers continue to have "skin-in-the game" - if they believe in their business, then we want them to share in its upside. 

Contact

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