Forum Highlights Benefits of Private Equity

AmCham Taipei, along with the U.S.-Taiwan Business Council based in the Washington DC area, provided support for a Sept. 14 forum entitled “Private Equity in Taiwan: A Pathway to Growth.” The event was jointly organized by the American Institute in Taiwan (AIT) and the Ministry of Economic Affairs.

In recent years Taiwan has attracted very little private equity (PE) investment, following some high-profile cases in which investment applications by PE firms were either rejected or dragged on until the applicant withdrew. The forum appeared to be a welcome indication that the Taiwan authorities are now actively seeking to woo PE investment.

Speeches by three government speakers – MOEA Deputy Minister Kung Ming-hsin, National Development Council Deputy Minister Cheng Cheng-Mount, and Financial Supervisory Commission Vice Chairperson Huang Tien-mu – all stressed the value that PE investment could bring to the Taiwan economy, aiding in industrial upgrading, innovation, and expansion of global markets.

Two panel discussions – one of them moderated by AmCham Vice Chairman Leo Seewald, chairman of BlackRock Taiwan – provided an opportunity for prominent financial-services executives from Taiwan and elsewhere in the region to explore the benefits of PE for Taiwan in some detail. One theme was the large number of successful family-owned enterprises in Taiwan in which the founder-chairman is quite elderly but the younger family members lack the ability or interest to take over. Cooperation with PE investors can offer a solution, enabling the family to continue to benefit financially without having to take responsibility for the management.