Exit Strategis for private equity/venture Funds in Nepal

I often get asked what are the different exit options  for private equity/venture fund  operating in Nepal since the IPO  route will be a tough sell. .................In a recent interview,Head of Leopard Capital  nicely explained various exit options for PEs  in countries similar to Nepal

1. Front Running Liquidity "We use different strategies. There’s no cookie cutter approach. One thing we look at is the unusual interest that multi-nationals have in accessing new emerging markets like Cambodia, where there’s still not a lot of brand awareness yet. The population is very young, so it is a tantalizing market to multi-nationals whose home countries are stagnating.Pioneer investors like Leopard can front-run the multi-nationals by creating new businesses they will want to acquire later.."
2.  CASH FLOW Trick "A second one is using the business’ cash flow to provide our returns, usually through high-yield debt, enhanced with an equity kicker so that we get both a fixed return plus a variable return based on performance.That structure works best when the cash flow is predictable, usually not in a startup unless there’s a contract in place providing visibility into the cash flow generation." 
3. "A third strategy is investing in companies just before they go public. Here the best approach is to take a small stake in a large company so that you are not subject to a lockup period."  ( In Nepal this strategy could work for hydro and tourism) 
4. "Our fourth strategy is to sell our position back to the company’s promoters or co-investors. In some cases owners may want us in their company for a period of time while they are scaling up. So we can sometimes negotiate put options or pre-planned sales back to our co-investors."  Source:http://leopardcapital.blogspot.com/2012/01/cambodia-new-emerging-market.html