Ep 190: Frewen Lam - Investing Smarter: Lessons from Private Markets, Asia & Agri
Feb 17, 2025
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Frewen Lam, Managing Partner at ROC Capital and expert in private markets, shares his remarkable journey from an immigrant background in Australia to co-founding a firm managing $8.5 billion. He dives into why private investments typically outperform public ones and discusses the untapped potential in agriculture and real assets. Frewen also sheds light on the vibrant economic prospects in Asia, specifically China and India, while exploring how savvy investors can capitalize on opportunities in private credit and secondary markets.
Frewen Lam emphasizes the strategic advantages of private markets over public ones, highlighting the potential for higher returns through operational improvements and management efficiencies.
He discusses the significant growth opportunities in emerging markets like India and China, while stressing the need for a risk-aware approach due to political and economic uncertainties.
Deep dives
Fruin Lamb's Journey and Background
Fruin Lamb discusses his upbringing in Australia as the child of Vietnamese Chinese immigrants, instilling values of resilience and hard work. His family's struggles shaped his perspective on opportunities in the financial world. From a young age, his family's bakery taught him the basics of business and customer service. After excelling academically, he pursued a career in finance, quickly transitioning from Macquarie Bank to founding Rock Capital in his early thirties.
Investing in Emerging Markets
Lamb emphasizes the importance of understanding the complexities of emerging markets, particularly India and China. He describes the potential for significant growth in these regions but warns that risks abound due to evolving political and economic conditions. His experience navigating Asian markets has taught him to approach investments with a risk-aware mindset, focusing on due diligence and partnership with local experts. This strategic thinking allows his firm to manage investments more effectively in unpredictable environments.
The Value of Private Markets
Lamb highlights the advantages of investing in private markets over public markets, particularly the operational value that private equity firms bring to their investments. He notes that in the private space, there are often significant opportunities due to gaps in information and management inefficiencies. These characteristics allow for greater potential returns, as firms can influence the businesses they invest in. Additionally, Lamb notes the shift in focus from simple IPO strategies to enhancing operational performance and improving the overall value of assets.
Challenges and Strategies in Agriculture Investments
In the context of agricultural investments, Lamb explains the inherent risks involved, such as extreme weather and market volatility. His firm employs a dual strategy of operating assets and owning farmland to mitigate these risks while seeking stable returns. By investing in established players with the capacity to absorb shocks, Rock Capital aims to shield itself from the negative impacts of agriculture's unpredictability. Lamb believes that by maintaining diversified interests and aligning with industry leaders, they can effectively navigate the challenges within the agri-business landscape.
In this episode of Inside the Rope, host David Clark sits down with Frewen Lam, Managing Partner at ROC Capital, to explore the ever-evolving landscape of private equity, private credit, and real assets. Frewen shares his journey from a first-generation Australian with immigrant roots to co-founding ROC, now managing $8.5 billion in assets.
Key Highlights:
* Frewen’s transition from public to private markets—why he believes private investments outperform.
* Lessons from investing in Asia, including insights into China and India's economic trajectory.
* Why agriculture and real assets are the next frontier for wealth creation.
* The opportunities in private credit and secondary markets—how to buy assets at a discount.
* How top investors build portfolios that balance risk and long-term returns.
Frewen’s sharp insights, combined with David’s wealth advisory expertise, make this a must-listen for investors looking to refine their approach to alternative assets.
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