CEO Insights Magazine

Alternative asset management plays a key role in managing beyond investors' traditional assets. If the reports are anything to go by, the alternative asset market in Asia is poised for transformative growth, with AUM projected to exceed $30 trillion by 2030. The digital asset management market alone is expected to grow at a CAGR of 19.2 percent from 2024 to 2030. Despite these prospects, the industry faces a fair amount of challenges.

Though innovative financing and government initiatives are improving access, private and public credit markets are constrained by liquidity. Hedge funds and fund-of-funds remain underdeveloped, requiring investor awareness and portfolio diversification. On the other hand, scalable real estate faces obstacles like urban planning restrictions, high costs, and saturation. Overcoming these obstacles and making an Asset Management company successful depends on experienced leaders who can read the tides fast and set the market narratives right.

This embraces the story of John Tan, Chairman & CEO, AEI Capital Group. AEI is a leading Asian Alternative Asset Management Group focused on Growth Equity in both private & public markets globally, with group-wide AUM exceeding $3 billion. The company's sophisticated services are complemented by its boutique investment banking arm with over 40 years of combined professional experience.

AEI’s spearhead, John, with over a decade of professional experience, drives business growth by fine-tuning market positioning, developing investment campaigns, overseeing digital content, and shaping product narratives. He is an expert in refining strategies to attract investors and enhance the firm’s presence in a competitive financial landscape by leveraging innovation, partnerships and market analytics.

John's corporate law experience, which specializes in private equity and capital markets, has been instrumental in his path to success. He holds a Bachelor’s degree from the prestigious University of Malaya. We have John here for an exclusive interview, wherein he walks us through his journey, corporate law background, and the latest endeavors. Below is an excerpt from the recently concluded interview.

Given your extensive professional experience in the BFSI sector, could you share the strategies that have contributed to your sustained success over the years?

My career as a corporate lawyer in private equity and capital markets laid a solid foundation for my professional expertise in Capital Markets, which, in return, coupled with my keen interest in history, allows me to analyze concepts deeply and understand industry dynamics across sectors, tracking growth trajectories effectively. At our asset management group, fostering growth in private or public markets remains our central strength. This core ability is supported by strategic adaptability, deep market insights, discipline, and risk management, which are critical to our progress.

While I consider success an ongoing journey, recognizing gaps and staying adaptable fuel our growth. In an era of technology and rapid change, like advancements in AI, embracing continuous learning is essential. Guided by the motto 'Learn, unlearn, and relearn', we ensure the sustainable growth of our business.

What is your motto while finding solutions to the biggest challenges across your path?

The biggest challenge today lies in geopolitical risks, which introduce uncertainties at both micro and macro levels within our investment universe. However, our expertise, particularly at my level, and our understanding of historical trends across regional markets have equipped us to navigate such risks effectively. To address these challenges, we ensure strong risk control models are in place.

Additionally, the rapid pace of technological development presents another fundamental challenge, like a double-edged sword. Those who can identify emerging trends early and capture their potential while they are still undervalued are sure to succeed. We strive to be among those groups. These two challenges are the key areas we have identified and are actively addressing.

How do you identify areas for improvement and contribute to implementing effective solutions in real-time?

We use our proprietary tool, OKR (Objectives and Key Results), a management framework to track weaknesses and realign goals. Through continuous adjustments to our OKRs, we ensure our focus remains on addressing areas for improvement effectively. In addition, we emphasize prioritization as a principle. We categorize areas for improvement into two types, namely subject matter-based and time- or priority-based. The industry often prioritizes incorrectly, where patience or urgency is misjudged. 

Therefore, our approach involves pacing decisions thoughtfully, ensuring the right balance. We reverse engineer the optimal course of action by analyzing subject matter-based weaknesses. Our philosophy of continuous learning enables us to propose meaningful solutions and drive improvement across the board.

How would you briefly describe your leadership approach?

My leadership style revolves around three key elements. The first is clarity. I always communicate with absolute precision, ensuring there’s no ambiguity regarding objectives, key deliverables, or milestones. The second is empowerment. I strongly believe in the potential of individuals, where I excel at identifying their strengths and weaknesses, providing clear feedback in a supportive manner, and amplifying what they’re good at to foster growth and confidence among my colleagues and partners. The third is accountability. I maintain a strong system of checks and balances to align team performance with organizational goals. Through our REAP mechanism, I ensure consistent accountability while supporting course correction when needed.

What does your roadmap for the next five years look like?

Our aspiration is to build a full-fledged financial institution, with institutionalization as its cornerstone. Over the past 13–14 years, the firm has been closely tied to me as its founder and leader. My goal now is to replicate and systemize my principles and core capabilities across the organization, ensuring it evolves beyond financial and business achievements.

Currently, with assets under management surpassing $3 billion, we aim to grow this to $5 billion. We are also strengthening our investment banking arm to complement our asset management capabilities, striving to create a well-rounded alternative asset management group. Our vision extends to becoming a global leader in growth equity and value investments. En route, we will focus on sustainable growth and achieving long-term success.

John Tan, Chairman & CEO, AEI Capital Group

With over a decade of professional experience, John serves as the Chairman & CEO of AEI Capital Group. An alumnus of University of Malaya. John is a seasoned professional with a distinguished background in corporate law, specializing in private equity and capital markets. This experience has been instrumental in his way to success. Beyond legal expertise, he cultivated a deep interest in history, enabling a comprehensive understanding of industry evolution and the rationale behind major shifts in global markets. In an era of rapid change, particularly with advancements in AI and shifting global trends, he remains committed to continuous learning and staying ahead of the curve.