Category Financial Investment

Benefits Of Offshore Investing and Savings

Offshore banks have a reputation for great wealth building opportunities. An international bank offers financial services, lending opportunities and payment accounts for individuals or companies. International banks have their own rules and policies on how they do business. They also tend to offer their services to wealthy people.

 

 

 

International Banking Benefits

Most companies use international banking services to help facilitate their offshore markets. Individuals and companies also use international banks for tax reasons. Some individuals and companies want to invest in a domestic corporation or possibly a real estate venture. Some wealthy individuals keep their money offshore to protect it from lawsuits. If you are interested in setting up an international account, then go to http://www1.uob.com.my/business/cash/cash_management_bizca.html

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How to Manage Offshore Investments

There are software programs that offer help with cash management issues such as offshore investing. You can also find attorneys who specialize in offshore investments for individuals and businesses. The main benefit for offshore investments include tax planning and protecting assets. Spread out your investment portfolio for best results. You should be able to have access to your investments from a wide range of markets. All investments require a certain amount of risk. Seek professional advice if you are confused or unsure where to invest.

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Software programs help with cash management

 

Money Management Tips

A budget is a financial tool that keeps you aware of your spending and saving habits. You should establish a budget that is realistic for you and your family. If you have poor credit, you can recover by following a few guidelines. The first step is to take control of your spending habits. Manage your credit card debt until all balances are paid off each month. Credit cards offer a wide variety of benefits that can save you money. Set a goal to pay your credit card balance off each month. Pay all of your bills on time to improve your credit score.

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Avoid common budgeting mistakes by not accounting for every small expense. These expenses build up and make you wonder where spent your money. It is also easy to underestimate the amount of money you need for home repairs and maintenance. Savings should be a high priority in any budget. A good budget will help you avoid wasting money on common expense categories such as household items, entertainment and food.

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If you are beginner to setting up a budget, start by listing all of your expenses. These include fixed expenses such as mortgage payments, student homes and car insurance. Monitor your budget on a daily basis to ensure you meet your financial goals. It is easy to forget about your budget and spend a lot of money.

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Set aside only 30 percent of your finances for housing. Another 30 percent should be allocated for transportation and food. The rest of the money should go towards savings and discretionary spending. It takes a little time to get used to living on a budget, but the results are worth it. Do not forget to allocate some of your savings for investing purposes.

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Vinod Sekhar – Rebuilding after Asian Financial Crisis

Life is full of its ups and downs. Just like the rest of us, Vinod Sekhar too had to go through unfortunate circumstances and hardships that life threw at him. So, where did it go wrong for him?

It was 1997, and Vinod had already started the Petra Group with his partner, Tunku Imran. As he reflected, part of the problem was being what he calls, the God complex. It was a time when, in his words, “everyone was telling me I was the best thing since sliced bread … and that everything I touched turned to gold”.

It is important to remember that he was just a young man at the time when recognition kept pouring in. It was definitely an overwhelming experience — being praised and being put on a pedestal like that at such a young age was just too much.

Vinod admits that the lack of experience caused him to start believing the hype. And because of that, he started doing things that “common sense says you don’t … business experience says you don’t”. One miscalculated business venture in particular was East Asia’s largest fruit and vegetable farm, which did not flourish due to a lack of government support.

The 1997 Asian Financial Crisis came as quite a shock that shook the core of the East Asian Boom. Vinod Sekhar had a setback during that time and was hospitalised overseas for health problems too.

“It was a situation where the ceiling had collapsed and I was not there to help salvage matters. I had not created the strong foundation and management systems to sustain business but relied on partners whom Tunku Imran and I trusted, and who had talked us into investing.”

Vinod is a man who always had control over matters. But unfortunately, during the Asian Financial Crisis, he was handicapped by his illness and his inability to be in the country took a toll on his business. Also Read: Vinod Sekhar – Most Prominent Businessman, Philanthropist Out of Malaysia.

By the time he returned to Malaysia, the bomb had already been dropped and it was just a matter of waiting to face the aftermath of the explosion. It short, “I was looking at a disaster”.

Another cause of the problems at that time, as he identified, was that they had too many businesses which caused them to be financially spread wide and thin.

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The Importance of Good Financial Planning

Good fiscal planning should not simply be restricted to a monthly budget, or how frugal you are at saving money. The fact of the matter is that proper financial planning should be included in everything you do from the time you leave the house to begin your day. Having access to the right amount of funds to purchase your cappuccino or meeting someone for lunch are all important factors that should be considered as good planning.

Most people who travel often already know that if they do not pack for the occasion, there is a good chance that they will have to shop while they are there. It is especially important that you get your house in financial order before leaving on a trip. Here are a few basic suggestions before you head off into the sunset.

Because fraud is catching up with technology, before you pack your bags, you should get in contact with your financial institution. Advise your bank manager that you will be out of the country for a week or two on holiday. This will avoid a few raised eyebrows and the possibility of a stop order being placed on your bank card when you are in a foreign country.

Many people consider themselves as invincible, and that they can’t be touched, so when the question of travel insurance comes up, they usually decline. Consider the consequences of losing your wallet while traveling thousands of miles away, what would you do? This may seem like an unlikely possibility, but it happens more often than you might think, which is why travel insurance is great for peace of mind.

One of the easiest things to do is to forget to make a car payment or your utility bill. During all the excitement in preparing for that long-awaited trip to Hawaii, remember to submit your credit card payment. A missed payment may not necessarily affect your ability to use your card, but it certainly won’t do much to help your credit rating when you get back home.

Finally, if you plan on carrying cash with you, use travelers checks for that purpose. Make copies of those checks and file it away at your home. If you should lose those funds, at the very least, you will have proof that they were yours. Most banks offer online banking that can be accessed from your smart phone. If you plan on using this technology, make sure that it works before leaving.

Source: China Sonangol International

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Private Equity for Small Start-Ups

Though investors have been buying and selling businesses since the industrial revolution began, private equity capital investment is a relatively new area in business investment and funding. The first true private equity firms started in the U.S. at the end of World War II to help military service members returning from the war secure investment funding for small business startups. Today, private equity companies fill an important roll in the small-business startup world that would otherwise be a gap in funding opportunities for the entrepreneur.

Commercial lending institutions provide funding to many of the largest corporations in the world and are accustomed to a level of investment risk, but they are not a viable option for start-up businesses seeking investment capital. Commercial lenders are understandably put off by the risk an entrepreneurial operation poses for an investor. After all, the commercial lender is only receiving interest on their principal loan amount. The small business start-up generally has little if any history in the marketplace and few if any assets to secure funding; they are by definition high risk ventures. They obviously cannot issue debt to raise money and they usually have no other access to the capital market, so what other options are available? This is where private equity investment institutions have come into play.

Private equity firms do not loan capital to small business startups with the expectation of receiving interest in return. Instead, private equity firms invest funds in the business itself. This type of investment normally comes in the form of venture capital, sometimes referred to as “risk money.” Because of the risk involved, venture capital comes with a much higher cost to the business owner. Not only will the lender be providing the capital, they will own a portion of the business in which they are investing. Further, with this kind of funding, the private equity firm will usually have a vote in company decisions, often times providing business expertise, pronounced personnel, to help make business decisions that will affect the potential success of the company.

Contrary to appearances, this is a symbiotic relationship; both the investor and the business owner benefit in these transactions. The startup company receives the capital they need to get off the ground and a vote of confidence that their plan, model or idea has merit and a chance to succeed. From the owner’s perspective, the equity firm has as much or more motivation to see the business succeed and is there to provide help through every step of the process. Providing the business expertise can be seen as freeing the entrepreneur to focus on building his product brand and getting the product to market. Lest anyone think that this is a small time operation, 11% of the jobs and 21% of the U.S. GDP come from venture capital startups. (National Venture Capital Association) Much of this funding is provided by private equity sources.

How Do Start-Up Companies Raise So Much Money?

Obtain further investment insights from David Hand Crescent Point Asia and Crescent Point Private Equity, the leading emerging markets investment management and financial advisory firm primarily focused on the Asia-Pacific and Middle East regions.

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Venture Capital Fund Raising Helps Small Business

Venture capital fund raising can also be called risk capital. In-depth market analysis is required in this kind of business. For an example of what venture capital fund raising is you would have to consider the following.

A number of dedicated investment agencies join together forming a team of highly experienced professionals. The capital they bring together is then invested in medium and small sized companies. Each member has a vested interest in making profit. The financial assistance provided to these companies helps them to grow and become a presence in the marketplace.

With the capital provided by these investors, these companies are able to advertise more effectively, launch new products, and build brand recognition. That in turn makes them more successful. Since the venture capital firm holds a stake in the business, their investment is made good on.

The key to successful venture capital fund raising is combining similar business units with the potential for delivering desired results over a short time period. Another feature of a joint venture is that the venture capitalists bring even more to the table than their ready cash. They also bring expertise and skills with them and provide technical assistance. These are just more elements in successful joint venture strategies.

It is not easy to convince venture capitalists to join together to help individual business on the road to growth. Not every proposal will be accepted due to the fact that it is very difficult to meet the standards required. Financial assistance is most difficult for those companies involved in a risky industry. At the same time, small business owners who do not demonstrate that they understand what they are doing find it even harder to secure funding.

Not only does venture capital fund raising provide he opportunity for investors to get a quick return for the money supplied, it also provides some with the chance to plan what the future actions of the company will be. Successful business people know how to direct the course of business, and this is just what this kind of team is, experts.

With it increasingly harder each year to be able to convince investors to take a chance in struggling businesses, if you are ready to give it a try, make sure that you have all your ducks in a row before asking for assistance. They want to know that you have something to bring to the challenge as well.

People who read this article also interested to learn more financial investment strategies from Crescent Point David Hand or stay up to date with Crescent Point news, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

Venture Capitalist Nick Hanauer Says Rich People Don’t Create Jobs!

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Asian Private Equity, Firms, Funds, News or Industry Information

The high growth of health care spending in Indonesia is attracting many private equity firms. Indonesia’s PT Lippo Karawaci has announced plans to sell off a 49 percent stake of its Siloam Hospitals. The deal could boost the value of the company to more than $1 billion in Southeast Asia’s largest economy.

The rising middle class in Indonesia is fueling the increase in health care spending and driving growth in the health care sector. Currently, Indonesia has one of the lowest GDP to health care spending ratios on the planet. Analysts expect that to change rapidly in the ensuing years.

This potential is starting to attract private-equity firms to Indonesia and other Southeast Asia countries. Indonesia has a population of 240 million people. KKR & Co. L.P. and Blackstone Group L.P. are looking over the investment climate in the area’s fast-growing countries.

Lippo Group, run by the Riady family, controls the company Lippo Karawaci and announced plans to sell off at least a 20 percent share of Siloam, as reported in Reuters. That sale is expected to fetch $200 to $300 million. Sources close to the impending sale expect that Bank of America Merrill Lynch will run the auction.

If initial bidding matches Lippo’s $1 billion target valuation, the firm could up the sale to 49 percent of Siloam. Sources close to the sale say that Blackstone, Bain Capital and KKR all have an interest in the sale. Other private equity funds that are reportedly interested include TPG Capital and Carlyle Group. All have refused comment due to privacy concerns.

It’s reported that the Riadys are seeking to raise capital in order to fund expansions in other ventures. A bit of uncertainty still surrounds the sale of the Siloam Hospitals group, which operates nine hospitals. This impending sale accounts for about 30 percent of the asset value in Lippo Karawaci.

As mentioned above, the sale could fold if valuations don’t meet Lippo’s expectations. If the valuation falls short, it’s believed that Lippo would cancel the deal and hold a sale next year. It’s believed that the Riadys are waiting for a report from Merrill to get a better feeling for investors’ valuations.

Indonesia’s exploding middle class is attracting global equity funds into the Asian equity market. The impending sale of the Lippo Karawaci property is a symbol of Indonesia’s growth potential and stability.

Blackstone and KKR are setting up offices in Singapore to be close to the Southeast Asia action. Bain Capital is hiring new executives as the competition heats up for equity deals in the region.

Private equity companies see the family-run businesses in Indonesia as prime targets to acquire and gain a foothold in non-core businesses. The Lippo Group has held a number of sales previously, such the PT Matahari Department Stores and stakes in cable TV and Internet service.

Private equity buys in Asia have fallen off in all sectors this year with the exception of health care. Health care deals in Asia have doubled in the first half of the year to $669 million. KKR has already closed two deals this year and is looking at other possibilities.

Obtain further investment insights from David Hand Crescent Point Asia and Crescent Point Private Equity, the leading emerging markets investment management and financial advisory firm primarily focused on the Asia-Pacific and Middle East regions.

Watch this video about Ban Ki-moon, the United Nations Secretary General, gives speech to the press about Health Care in Indonesia.

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