Tempest PE Partners (Tempest) is a private equity firm seeking to be on the forefront of Sri Lanka’s evolution from a frontier market to a vibrant emerging market economy. We invest in three strategic sectors: entrepreneur-driven businesses, state sector enterprises and project financing.
Tempest is a joint venture between Capital Alliance Holdings Limited (CAL) and Insite Holdings Limited. Insite Holdings is a dynamic corporate advisory firm whose founder offers over 20 years of experience in the ASEAN equities markets. Insite’s longstanding work in South East Asia, particularly in Malaysia, experiencing firsthand Malaysia’s transformation in the early nineties from a level of development similar to that of Sri Lanka today to an Asian Tiger economy, gives Tempest a unique insight into Sri Lanka’s potential development trajectory.
Our powerful partnership brings together extensive experience in a variety of financial services, a formidable network of business relationships and scientific observations of domestic and regional business cycles. We offer this matchless skillset to our portfolio companies and our investors.
The CAL Group connects Tempest to one of Sri Lanka’s strongest investment banks, providing access to consistent deal flow in the private equity space. Since inception in the year 2000, CAL has developed a reputation for excellence in execution, product innovation and integrity in the Sri Lankan capital markets and enjoys close business relationships with a large network of clients including the large business houses and most of the small and medium family firms in the country.
The word TEMPEST is derived from the Latin word ‘Tempus’, which means ‘Opportune Time.’ We at Tempest see this moment as Sri Lanka’s opportune time: a moment of transition from a frontier market to an emerging economy.
The Sri Lankan economy is poised for an inflection, buoyed by the Government’s commitment to make the country the hub of the Indian Ocean. Forthcoming free trade agreements with India, China, and Singapore are expected to further integrate Sri Lanka with global value chains while structural shifts in policy will open up new opportunities for local businesses.
We believe that non-traditional funding sources such as private equity will fill this vacuum in the future, providing companies with access to the growth funding required to advance to the next phase of development. Likewise, private equity can deliver superior returns for investors, especially considering the limited private equity options available for portfolio companies.
However, many businesses are constrained by a distinct financing vacuum in Sri Lanka, where a shallow equity market, high interest rates and basic lending structures restrict companies from financing their growth and other capital requirements.
Tempest uses the industry insight and financial expertise brought together by the partnership between CAL and Insite to enable its portfolio companies achieve accelerated growth both organically and through strategic acquisitions.
We actively advise our companies on creating new market opportunities, maximising efficiency and ROE's and generating the most value for shareholders.
Tempest seeks investments that offer superior equity returns relative to the risk we take on behalf of our investors. We seek a combination of the following criteria when screening potential investments:
We connect our portfolio companies with strategic partners when required and leverage our strong international network of investors and banking and corporate relationships to improve capital and funding structures and maximize ROE.
For each investment, we outline a clear timeline from entry to exit, ensuring smooth and timely execution of a development plan to realize superior earnings growth over our typical 05 year investment period.
We strive to stand out not just in terms of performance track record but also as a preferred business partner for our portfolio companies and our investors.
At Tempest, we are flexible investors, comfortable in both control and minority situations. We are not, however, passive investors and take on an active role in guiding each of our portfolio companies.
We believe that an outstanding management team is critical to realizing superior returns from any investment and we have the ability to unlock synergies and maximise potential to transform good businesses into great ones.
Our dedicated team of investment analysts bring together a comprehensive understanding of the local capital markets, in-depth analysis of key macro and micro economic trends and an entrepreneurial spirit to create a unique value proposition for our business partners.
Tempest’s close relationship with the CAL Group also enables the fund to benefit from access to some of the most talented professionals in the industry, heading market leading companies in Investment Banking, Equity Research, Asset Management and Equities and Fixed Income Trading.
This unique combination of intellectual capital and operational knowhow is key to developing long lasting, successful relationships with our investee companies and is a significant value addition for our investors.