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00:00So what is the situation right now. Supply chain. Better worse the same as last year. What are you seeing. Well very encouraging news with China reopening. And so there's been a significant impact on global supply chains arising from the lockdowns in China that had already exacerbated existing constraints on a global basis. What people may not know is you every year through April more ocean freight volume had actually left China than the previous year. However there are still somewhere between two hundred and fifty thousand and three hundred thousand container units of goods that haven't yet left the Shanghai area. And so that is something which needs to be worked through. Yeah that means that the potential for this summer in terms of disruption to ocean freight similar if not worse than what we saw last year it's pretty high. So you're also found on cargo as well. So you're very much focused on the trade flows I'm guessing in terms of when you mentioned the port congestion. When do you see that actually easing up. Well the ports themselves in terms of getting containers onto vessels is still flowing. One of the biggest challenges is around the inland logistics and in particular the trucking game goods from factory to the port itself. The news out of Shanghai should help alleviate that. However than what you get to the other side you've wanted to basically a mirror image of the same problem whether you're arriving in the west coast of the US or into the U.K. and then looking ahead to the summer while all this will take some time to work itself through there are additional risks. For example upcoming labor negotiations on the West Coast and things like that of that type. Do things naturally just work themselves out. Basically what what what are these issues remains in your view beyond this year and what fixes itself naturally. Well I think that in general the world needs to be prepared for more volatile and more expensive global supply chains. That is a that is a feature. That is something that is new. And we'll be with us for some time. In addition there is a need to have others other markets to source from. In addition to China. So you have China will always continue to play a very indispensable role in global manufacturing. Well you do see increasing dual sourcing from other parts across Southeast Asia itself. And then in general a shift from just in time to just in case that like that. So in terms of investment as a PE firm where do you look to invest and do you focus more on Southeast Asia geographically or is there certain sectors that you look at now. Sure. So as as emerge best we're passionate about the secure and sustainable movement of goods data and funds across the world. So we target investments right in the intersection of supply chain technology financial services although being headquartered here in Hong Kong we invest on a global basis. So we are particularly focused on helping Western businesses to enter Asia and be successful in Asian businesses to then enter the global stage where more specifically to your question we're investing in China and across Southeast Asia as well as planning for a US entry for our flagship portfolio company which is even cargo. What's that to me. I'm sorry. When's that gonna be. When the next 12 months. Next four months. Right now in terms of your ticket size your deal size. Give us an indication of what you're looking at right now. I mean we were talking during the break that you invest of course in the middle. Of course if the supply chain just give us an understanding really of the assets that you're looking for. It's a very wide range of opportunities that we look at from as little as 5 million U.S. dollars as much as 500 million U.S. dollars of enterprise value. And so that's that's because of for example entering the U.S. market. That would be a larger acquisition opportunity for us as we fill out our network across Europe or some smaller Southeast Asian countries. The investment size or transaction size will be meaningfully lower than we had Goldman coming out talking about this whole rally we're seeing in metals when it comes to the ETF space where there's lithium cobalt that basically there was just so much money piled in but everybody was betting on this whole green energy transition and that you just have too much investor exuberance right now and eventually to some kind of oversupply. Are you seeing that in the private markets in any way. Not really. Not really. I think that if you look at private fund formation since 2017 more than 1 trillion dollars are private funds are raised every single year generally between one point two and one point three trillion. With that there's more than three trillion dollars of dry powder available for private equity deal execution. However evaluations this year are coming down in line with the public equity markets which suggests discipline and amongst financial sponsor community. And with that merit from your perspective weighting or are you ready to pull the trigger. Like how do you just generally feel about sentiment and then confidence at this point. We think it's a great time to continue to invest in private markets. We see a good value in our acquisition pipeline. We have. More than 10 opportunities that we're working on right now. We tend to have a very well reasoned value creation thesis. Whenever we are making an acquisition. And so part of that is knowing what you were going to do with the investments if you were successful in making that acquisition in order to drive it forward through revenue growth earnings growth and so forth. Now just for the moment if you could remove your P had for me a logistics hat I just got to pick up on something you mentioned earlier just in case instead of just in time. Do you see corporates building up a lot more costs. Because the lessons we've learned in the last two years. For sure. For sure. And I think it manifests itself this way if you're a retail business. What is more expensive to carry some additional inventory or to miss out on the sale completely. If your manufacturer and you don't have enough of your raw material or components and you're not able to fulfill in order. So in general the supply chain will carry additional costs overall through inventory and through just the impacts of inflation.

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EmergeVest Chairman On Global Trade Outlook

EmergeVest and EV Cargo Chairman and Chief Executive Officer Heath Zarin says logistics and supply chain sectors continue to attract significant interest despite many external uncertainties. EmergeVest plans to raise approximately $1 billion of additional capital during the next 12 months. Zarin also plans to grow EV Cargo business to surpass $3 billion of revenue through a combination of organic expansion and M&A. He speaks to Bloomberg's David Ingles and Yvonne Man on "Bloomberg Markets: Asia." (Source: Bloomberg)

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