The merged entity will raise Seviora’s combined assets under management (AUM) to US$72 billion ($94 billion) from US$63 billion as at Sept 30.
According to the joint release dated Nov 26, the integrated platform will be well-positioned to tap into global demand for growth opportunities in Asia. With Pavilion Capital’s track record in the Asian private equity space, the integration will help Seviora expand its investment capabilities with expertise in Asia-based private equity fund of funds, the release adds.
Following the integration, Pavilion Capital will retain its brand and keep its pan-Asia investment strategy while marketing its products under the Seviora Group.
Tow Heng Tan, CEO of Pavilion Capital, will support the integration before retiring on March 31, 2026. The combined platform will report to Seviora Holdings’ executive director and CEO Gabriel Lim.
See also: Tokyo inflation beats forecast, keeping BOJ on rate hike path
With Pavilion Capital’s track record in the Asian private equity space, the integration will help Seviora expand its investment capabilities with expertise in Asia-based private equity fund of funds, says the joint release dated Nov 26.
Ho Tian Yee, chairman of Pavilion Capital, said it was “gratifying” to see the fund become an “important addition” to Seviora’s asset management franchise. At the same time, he also acknowledged Tow’s leadership and the team’s efforts over the past 13 years.
To Tow, serving as the founding CEO of Pavilion Capital was a “privilege”. In addition to thanking the team for their work, Tow expressed confidence that the fund will continue to thrive under Lim’s leadership.
See also: Reeves’ £26b tax hike calms markets after chaotic rollout
Lim notes that the integration reinforced Seviora’s ambition to become Asia’s leading asset management group.
“As Temasek’s primary asset management platform, we will continue to scale our capital base and broaden our investment solutions across private equity, private credit, public markets, and tailored financing options to meet the evolving needs of our partners,” he says.
“I would also like to extend our sincere appreciation to Tow Heng Tan and the Pavilion Capital Board for their steadfast leadership and guidance, which have shaped Pavilion Capital’s strong track record and positioned the platform for its next phase of growth,” he adds.
The proposed integration is expected to be completed by 1Q2026. — Felicia Tan
DBS is said to revise Alliance Bank proposal to 30% stake
Singapore’s biggest bank has withdrawn an application to start talks to buy as much as 49% of Alliance Bank Malaysia, replacing it with one to acquire up to 30% instead, people with knowledge of the matter said.
DBS Group Holdings made the decision after failing to get approval from the Malaysian central bank for its initial request, which would have required a waiver because generally a company can only buy as much as 30% of a financial institution in the country, the people said.
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
The revised request should have a better chance of being approved by Bank Negara Malaysia, the people said, asking not to be identified because the information is private.
That would pave the way for DBS to engage with Alliance’s largest shareholder, Vertical Theme, the people said. Vertical Theme is a Malaysian holding company backed by Singapore state investor Temasek Holdings. Temasek has a 49% stake in Vertical Theme via Duxton Investment & Development. It also holds about 28.3% of DBS.
Representatives for DBS and Vertical Theme declined to comment. A spokesperson for Alliance said the company was not aware of the matter. A representative for the Malaysian central bank said BNM does not comment on applications of acquisitions or disposals of interest in shares of regulated entities.
An Alliance deal would give DBS a footprint in Malaysia, where Singaporean rivals Oversea-Chinese Banking Corp and United Overseas Bank already have a presence. DBS is Southeast Asia’s largest bank by total assets. Alliance has a market capitalisation of about RM7.9 billion ($2.5 billion). — Bloomberg
Tech firms from Dell to HP warn of memory chip squeeze from AI
Dell Technologies Inc, HP Inc and other tech companies are warning of potential memory-chip supply shortages in the coming year due to soaring demand from the buildout of artificial intelligence infrastructure.
Consumer electronics makers including Xiaomi Corp have sounded the alarm about potential price increases, while others including Lenovo Group have begun stockpiling memory chips in anticipation of rising costs. Counterpoint Research this month forecast a 50% price rise for memory modules through the second quarter of next year.
A shortage would threaten to increase the costs of manufacturing everything from phones to medical equipment and cars. Such chips are used in virtually every modern electronic device that stores data. The AI boom is indirectly to blame. There are two types of memory chips, ones that help with processing and ones that store information. Manufacturers are allocating more production to meet demand for new, more complex and profitable products used in AI systems, causing a shortage of more common types of memory.
Dell has never seen “costs move at the rate” that they are now, COO Jeff Clarke said on a call with analysts on Nov 25. The company has seen tighter supplies of dynamic random access memory (DRAM) — which includes high-bandwidth memory for AI to the chips powering personal computers — as well as of hard drives and so-called NAND flash memory, he said. “The cost basis is going up across all products.”
Dell will work on its configurations and product mix, but Clarke said he sees the impact inevitably reaching customers. The Texas-based computer maker will consider all options, including repricing some devices, he said.
US sanctions have also worked to exacerbate the supply crunch by limiting the technological capabilities of new Chinese entrants.
Palo Alto, California-based HP sees the latter half of 2026 being particularly challenging and will increase prices where necessary, CEO Enrique Lores told Bloomberg News in an interview.
“For the second half, we are taking a prudent approach to our guide, while at the same time we’re implementing aggressive actions” like bringing on more memory suppliers and putting less memory in products, he said. The company estimated that memory accounts for 15% to 18% of the cost of a typical PC.
The race to build AI infrastructure has already raised energy bills in areas near large data centres. It has also lifted the valuations of the world’s top memory makers. Shares of South Korea’s Samsung Electronics Co and SK Hynix Inc, along with Micron Technology Inc, have surged in recent months as inventories dwindle and supply challenges crystallise. SK Hynix said last month that it has sold its entire memory chip lineup for next year, while Micron expects supply will remain tight into 2026.
Japan’s Kioxia Holdings Corp, which specialises in NAND production, saw its stock increase multiple times following its December public listing, propelled by the same tight supplies.
“Everything that’s related to memory — advanced or conventional — is in very strong demand and supply is lagging,” Sanjeev Rana, head of research at CLSA Securities Korea, said after Samsung issued earnings last month. “We are likely to see this DRAM and NAND price upturn lasting several quarters from here.”
Suppliers of logic chips, the kind that process data and are critical to building AI systems, may also see their business affected as their customers may refrain from placing orders if they cannot secure enough memory.
China’s top chipmaker Semiconductor Manufacturing International Corp (SMIC) has noted that the memory shortage is coming as manufacturers prioritise business with the world’s largest AI chip provider, Santa Clara, California-based Nvidia Corp. Nvidia in turn has placed an emphasis on assembling its highest-value, most advanced systems bound for AI data centres. SMIC warned that a shortage of memory may constrain car and electronics production in 2026.
In Beijing, Xiaomi jacked up the price on its marquee device and said it expects a shortfall in memory chips will lead to price increases for mobile devices next year, too.
Lenovo has touted its economies of scale and said it sees an opportunity to grab more market share by leveraging its supply chain while competitors struggle. Still, CFO Winston Cheng echoed Dell’s remarks, also calling the cost surge “unprecedented”.
Apple Inc has given one of the most sanguine of assessments. CFO Kevan Parekh acknowledged on a call with analysts that there’s “a slight tailwind” on memory prices and some “new products do have a slightly higher cost structure.” But he stressed that Apple is managing costs well. Like Lenovo, Apple’s position as one of the top customers — if not the top customer — for many players in the electronics supply chain helps it secure strong terms for ongoing supply.
Lenovo’s memory inventories are meanwhile roughly 50% higher than usual, Cheng told Bloomberg TV. Taipei-based Asustek Computer Inc has also raced to stockpile, with both PC makers planning to hold prices steady in the holiday quarter and reconsider the market situation in the new year.
Chey Tae-won, chairman of SK Hynix parent SK Group, also warned of a supply bottleneck earlier this month. “We have entered an era in which supply is facing a bottleneck,” Chey said in a keynote speech at the SK AI Summit in Seoul. “We are receiving memory chip supply requests from many companies, and we are thinking hard about how to address all demands.” — Bloomberg
