First Reserve opens in Asia with MD Paton

The firm is to launch First Reserve Asia Limited this month, with Hong Kong as its first bureau in Asia. The group has appointed former 3i Asia Co-Head - and more recently Candover Asia's Hong Kong-based MD - Jamie Paton as MD to manage the operation, while former Investment Manager at Candover, Allen Gu, has been appointed Director. According to the firm, existing First Reserve staff will relocate to Hong Kong throughout the year.

First Reserve joins a list of firms including Lexington Capital, Partners Capital, Campbell Lutyens, CIC and Redwood Capital, which have established a presence in Hong Kong in recent months.

The Connecticut-based firm may be establishing a physical presence in the region now, but it has been active in Asia for some time. Specific investments include a stake in Singapore-based oil and gas exploration outfit KrisEnergy, Pune, India-based wind turbine manufacturer Kenersys, and Western Australian engineering firm Calibre Global.

Managing Director Alex Krueger told AVCJ that First Reserve Asia will operate a pan-Asian strategy. "The focus on each market is quite different," he noted. "In Australia we see a lot of opportunities in natural resources production and services companies in oil or mining, and in Southeast Asia there's a lot of oil and gas activity and oil-field services. In China we see... a great deal of opportunity for add-ons to existing portfolio companies and joint ventures." Krueger also said that the firm's existing partnership with KrisEnergy will also open doors.

William E. Macaulay, Chairman and CEO of First Reserve, said that the firm hopes to see broadly increased opportunities as Asia's energy demand spikes as a result of urbanization and industrialization.

Japan's Institute of Energy Economics had previously forecasted that, while the world's primary energy demand is set to increase by 1.6% by 2005 and 2030, Asia's is set to double due to a surge in population and economic growth. China and India are set to account for 27% and 12% of the world's energy demand by 2030, respectively. According to AVCJ data, investment into Asia's energy sectors - cleantech, engineering services, engines and turbines manufacturing, mining and gas extraction and utilities - rose from $2.5 billion in 2006 to $3.2 billion in 2010, though the number of deals in the sector actually fell, from 106 deals in 2006 to 77 four years later. The regional sector reached its height in 2008, when the industry invested $9.7 billion.

 

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• Topics
• Greater China
• People
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• Lexington Partners