Lighthouse Canton was pleased to host an exclusive small group luncheon with leaders from several family offices in Singapore together with our team of industry experts - Nilesh Jasani and Venky Sethuraman of LC GenInnov Global Innovation Fund, and Sanket Sinha, Global Head of Asset Management for Lighthouse Canton.
Discussions were enthusiastic and attendees engaged at length on topics such as the AI revolution, alternative investments strategies such as private credit and venture debt, the rapid evolution of the EV market, and the unique challenges faced by family offices. Please find a recap of it below, we hope this provides for some interesting reading.
This lunch was held as part of the IDEAs (Investments, Disruptors, Economy, and Alternatives) series of networking events.
AI to dominate economic & technological discourse
The AI revolution, which started in 2022, marked a transformative shift in technology, with AI systems now capable of learning through observation and inference, solving problems efficiently. Impacting fields like drug discovery, robotics, material science, energy, and healthcare, AI is expected to become as pervasive as the early internet. Predicted to match the combined GDP of India and China by 2040, AI will dominate economic and technological discourse for the next 15 years, reshaping industries and driving innovation.
Rise of alternative investment strategies in Asia: private credit & venture debt
Fueled by economic giants like China, India, and Japan, Asia's alternative asset management sector is seeing transformative shifts. However, regional expertise among alternative asset managers is lacking. This gap is fostering opportunities for local players in private credit, fuelled by borrowers moving away from traditional banking to diverse credit options. Asian startup ecosystems, led by China and India, are gaining global stature. Venture capital investments are evolving towards longer horizons and venture debt, reflecting a dynamic market with a focus on risk management and portfolio optimization.
Family offices seek more liquid solutions, diversification
Family offices grapple with liquidity challenges from long-term investments, seeking quicker solutions within a decade. Next-gen owners value specialized managers with industry expertise, while balancing family expectations about valuations. Risk management emphasizes diversification across asset classes to weather market downturns. Market concentration, epitomized by NVIDIA's dominance, fuels the ongoing active vs. passive investment debate. Active managers struggle to outperform as top stocks dominate indices. Maintaining liquidity and benchmarking performance remain complex, compounded by transaction costs and the need for readily available funds.
Rapid evolution of the EV market
EV innovation advances with new battery technology combining NMC and LFP features, enhancing power and stability. Autonomous vehicles are rapidly increasing in the US, particularly in San Francisco, with numbers reportedly doubling every three months. Investors should focus their strategies on established companies over early-stage startups to mitigate technological obsolescence risks. China dominates the EV market with BYD and Huawei as key players, though potential US tariffs may shift focus to other Asian markets. Despite 'EV fatigue', recent high temperatures underscore the importance of continued EV development in addressing climate change.
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