Profile: Veronica John of Serasi Capital

It was late 2002, little more than a year after the attack on the World Trade Center, when Veronica John's boss at the Asian Development Bank (ADB) popped into her office and asked matter-of-factly if - now that the Taliban had fallen - she would go to Afghanistan to set up a bank.

It was a no-brainer for John.

"The role was to set up the first bank since the fall of the regime, and I remember looking up at my colleague from my computer and telling him I would make a few phone calls and get back to him," says John, who is now the managing partner of Singapore-based fund-of-funds Serasi Capital. "I went, and it ended up being easy, and it was fun."

Certainly not the classification most women would attribute to their experience in Afghanistan in the early 2000s, but it wasn't the first time John had thrown herself in at the deep end.

She grew up on a dairy farm in upstate New York, and always dreamt of leaving the US. Her opportunity came when she was 29. Having received her MBA at George Washington University, John boarded a one-way flight to Khazakstan, where she did privatization work for Carana Corporation and then operated the Central Asia Enterprise Fund - basically teaching the art of capitalism to post-Soviet businesses. She stayed there for the next three years, and then joined the ADB in Manila, leading her to Afghanistan.

John's corporate path is unconventional by most standards, but one would never know it speaking with her. When asked of eminent dangers of being a businesswoman in these countries, she says she's never felt particularly unsafe. However, she has jumped out of cars to escape the men driving and held her ground in skirmishes with Central Asian border immigration squads, to name but a couple of her colorful experiences in the region.

"People are curious to see a woman in an environment where few women are involved in business," she says. "This gives you access and there is a better opportunity for people to get to know you because they will spend the time."

ADB, CDC, IDFC

At the ADB, John oversaw emerging markets fund-of-funds investments, ushering in a wider career in private equity. She spent a brief stint at CDC in London, taking responsibility for its Asia portfolio, but was lured back to Asia in early 2008, joining IDFC Capital, Infrastructure Development Finance Company's private equity arm, in Singapore. Three years later the firm exited the fund-of-funds business, citing the difficult investment climate.

Reports at the time noted that IDFC's newest fund, set up in 2009 with a target of $500 million, had failed to raise any capital. Four investments were made from the $50 million in seed capital granted by its former parent.

John simply says that IDFC's exit was prompted by a shift in its strategic priorities, and she used the situation to her advantage, opting to launch Serasi Capital. "It will likely be easier to raise money by virtue of not being a captive," she says. "Plus it's always nice to have the independence as opposed to being tied to a large institution."

Serasi's vision is to focus on "first-generation managers," or those that have raised between one and three funds, whose mandate is expansion capital in emerging markets. The name Serasi itself, meaning "harmony" in Indonesian, is a strategic play given that it's neither Chinese nor Indian, instantly defining itself as a different sort of Asian investor.

The fund-of-funds is currently in raising its maiden vehicle. John admits that the environment is challenging, but she's convinced the endeavor will be rewarding.

"I love private equity and investing, and being a foreigner in these markets for many years makes me well suited for doing fund-of-funds," she says. "Local managers are able to do a better job at direct investing, but given my experience throughout Asia and also having direct investment experience, I think that I bring a nuanced and informed approach to evaluating managers."

Onward and upward

John has been on the move for more than a decade, across markets in Eastern Europe, Central Asia and the Far East, but in Singapore, and in Serasi, she has a long-term plan. Despite constantly being on the road to drum up support for her fund, she tries to get back to the city-state during weekends at least, where she's got friends - and two cats - to make her feel grounded.

John has worked hard for this stability, and credits her early posts in off-the-beaten-path destinations for laying the groundwork for her future success. And she says that, if she weren't in private equity, her work would still be centered around emerging markets ("maybe microfinance?").

When asked of her proudest achievement, John points to her time in Kazakhstan, where she learned Russian and was one of few foreigners, working with a team of 120 local staff. She avers that she brokered her strongest friendships there, as well.

"When I got to Kazakstan, I knew I was on my way," she says.

 

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• Topics
• GPs
• Southeast Asia
• Central Asia
• Emerging Markets
• Serasi Capital