Local teams drive successful investing across Asia

Michel Lowy, who has invested across Asian markets for more than 30 years, noted that SC Lowy built on-the-ground teams across the region to assess local investment opportunities. He traced the firm’s work back to the late 1990s Asian financial crisis, when banks sold loans and many deals became available.

Lowy described a market shift since that period toward concentration in some countries, with a small number of large players dominating sectors. “When we first started after the Asian financial crisis in the late 90s, it led to lots of investment opportunities as banks were selling their loans. Now we are in an environment where there are oligopolies in the countries where we operate; it’s about interpreting that shift,” he recalled.

He noted many Asian economies are inward-looking, with investors focused on their home markets. “When you look at Asian economies, they are very insulated and internalised. So Korean investors only focus on Korea, Indian investors only focus on India.” The firm has spent decades establishing teams in each market to build local knowledge and evaluate deal dynamics country by country.

Lowy outlined three types of markets across the region: developed and predictable markets such as Japan and Australia; rapidly developing markets such as India; and others that he considers not ready for investment. He does not expect the gap between the largest and smallest economies to widen sharply. “We see the middle being lifted; places like India or Thailand are getting closer to the top,” Lowy added.

Looking ahead, Lowy pointed to opportunities in Hong Kong real estate and to new openings in parts of Australia the firm is watching. He added that the firm’s local network helps interpret structural differences and identify where investment possibilities may arise.