Paton is living proof that even decades spent in a desk job donÆt have to quell a sense of adventure. He began his career in private equity with London-headquartered 3i after four years with accounting firm KPMG in Scotland. He moved to Hong Kong with his wife and three children in 2000 to set up 3iÆs Asian operations. He was co-head of the firm in the region when he resigned.
ôWe wish weÆd come [to Asia] as a family earlier,ö says Paton of the move across continents early this decade.
Paton who was born in India and grew up across Asia was keen to return. His three children û 20-year-old Lindsey who studies at Sydney University, 19-year-old Jock who goes to Exeter University and 16-year old Campbell who goes to Merchiston Castle School at Edinburgh û have done stints at Hong KongÆs South Island School. Paton had worked with 3i for 20 years when he quit in 2007 and decided to pursue some of his dreams.
ôWhen I left 3i last year we had the opportunity to take a real break and do some of those things that one always puts off for another day,ö says Paton. ôWith our kids basically grown up we were able to travel with no plans.ö
Paton and his wife took a short break to Bermuda to catch up with old friends then drove through Italy and the South of France. The second part of their adventure saw them change hemispheres and drive a campervan through Australia. ôI wanted to learn how to surf,ö explains Paton of the decision to travel the east coast of Australia, though he ruefully confesses heÆs not yet much of a surfer.
Paton, who has been surfing at Shek-O in Hong Kong and Bali since he first took up the sport in Australia last year, is a step apart from most novices. He is actually frank about his abilities and determined to improve: ôI still enjoy struggling to stand on a surfboard.ö
In 2008 Paton returned to an industry heÆs been part of for more than two decades and which has benefited from him serving as chair of the Hong Kong Venture Capital and Private Equity Association between 2006 and 2007.
ôCandover is a fantastic brand in Europe and has a history of private equity investing built over 30 years,ö explains Paton of his decision to take on the job to set up the European firmÆs Asia operations. ôThis attracted me to return to private equity.ö
Despite the gloom and doom currently prevailing in financial markets, Paton is confident that private equity as an asset class in Asia will continue to grow.
ôThe levels of private equity activity or even M&A activity across Asia are still limited; even in the most mature markets like Japan and Australia the numbers are small when compared with the US and Europe,ö says Paton. ôMany of the brands and companies Candover has invested in have already developed in Asia,ö says Paton, going on to add that CandoverÆs team grew familiar with Asia by the constant business trips they were making to the region to visit their investee companies. Candover has recently invested in truly global brands such as Technogym, the exclusive supplier of gym equipment to the Beijing Olympics, and Ferretti, the leading luxury motor launch group.
That is now part of CandoverÆs remit to Paton û to see how he can help the firm's existing portfolio grow in the region. Our mandate is a flexible one, says Paton. ôWe aim to bring CandoverÆs strong buyout performance and discipline to Asia where the private equity community has had to be flexible to be successful,ö he clarifies. ôWe will consider both buyout deals as well as minority stakes in high-growth companies.ö
And Paton is staffing up across Asia to help him achieve this goal. He has already built a team of five in Hong Kong, including Olly Stratton who was brought on board from consultancy firm Bain where he was head of the Hong Kong office. Stratton is a veteran in the region, having spent two decades with Bain here.
In Mumbai, Harsha Raghavan, a cofounder of Goldman SachsÆs principal investment area team, has jumped ship to Candover to help grow the private equity firmÆs portfolio in India. Peter Goode, an experienced industrialist who led a number of CandoverÆs large oil and gas transactions, has relocated to Sydney to lead the charge in Australia.
In the current environment it's not only PatonÆs balance on a surfboard that has yet to reach equilibrium. ôI think it will be some time before we see stability in the financial markets û each recent week seems to have brought yet another story,ö says Paton. ôFor those working with the likes of Lehman, Merrill or AIG itÆs been an unbelievable roller-coaster of emotions."
ôI guess we are all trying to figure out how these significant changes will affect the economies in which we operate in Asia,ö reckons Paton. But he is optimistic, citing the number of companies in the region that are focused on domestic markets and continue to perform strongly.
The day I met Paton he had just returned from celebrating fatherÆs day in Australia with his daughter, Lindsey. Travelling with his wife to see his children is one of the things he enjoys doing in his spare time, he says.
IÆm curious about whether Paton has plans to set off in a camper van again. ôYes, we have the other half of Australia to see, then itÆs off to the US,ö he says, though he refuses to be pinned down about when the second bout of wanderlust will strike. Until then, Paton will remain busy with his second innings in the private equity industry.
This article first appeared in the October issue of FinanceAsia magazine.
¬ Haymarket Media Limited. All rights reserved.
