The trend of companies choosing to stay private for longer is particularly marked for technology companies. If the experience in the US is any indication, the average age of US technology companies that went public in 2014 was 11 years, up from just 4 years in 1999. We are seeing the same among Asian tech start-ups. - Alibaba stayed private for 15 years before its IPO in 2014. - Closer to home, Singapore-based Sea Ltd, Southeast Asia’s most valuable start-up, raised its first funding round in 2009 and only recently filed for an IPO after 8 years. - Razer Inc., which was founded in 2005 by a Singaporean and is now based in California, is still staying the course as a private company. Asia is experiencing a surge in PE deals in technology and internet based businesses. Such deals made up more than 45% of the region’s total PE deal value in 2016. As Asian companies become increasingly receptive to the PE value proposition, opportunities abound for institutional investors in companies along the entire growth spectrum. The PE momentum in Asia is expected to remain robust. China will continue to be a steady source of activity as it rides the retail e-commerce boom. In Southeast Asia, internet companies will require $ billion in investments over the next 10 years, according to a joint study by Google and Temasek. 4/6  BIS central bankers' speeches  The second investment theme is Asian real estate and infrastructure. Asian real estate has seen growing interest as an institutional target.
This will facilitate faster time-to-market for VC managers, and promote financing for enterprise development. We are also working with government agencies, universities and industry players to explore industry-wide talent development programmes for VC and PE managers. There is a growing suite of opportunities in bankable infrastructure projects. Investors with strong in-house infrastructure expertise can engage in direct investments in green-field projects. This can be done alongside multilaterals and commercial banks. Others can tap on established fund managers focused on Asian infrastructure. Yet another opportunity lies in project bonds. But these remain relatively nascent in Asia. 5/6  BIS central bankers' speeches  Regardless of the investment approach, project structuring is critical in bringing to fruition infrastructure projects. For investors looking towards Asian infrastructure, Singapore offers a dynamic ecosystem – with quality solutions in project advisory, project financing, and legal services, and dispute resolution. Conclusion Let me conclude. The global economy is in a better shape than it has been in a long while. Financial markets reflect this but have probably under-estimated tail risks. Reduced volatility in the markets should not beguile us into thinking there is less uncertainty out there. Some caution will not be entirely misplaced. Asia remains the biggest growth story in the world. There is still much work ahead in regional economic integration and domestic structural reform. But Asia is moving forward. And the region’s economic fundamentals remain sound. Investing in Asia is about participating in this growth story.