Local with Locals Regional Platform
Combine local market expertise with one shared investment system
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 6
- Confidence
- 97%
The Local with Locals model builds a regional organization through two complementary layers. First, the firm recruits teams native to each market so decisions reflect local language, relationships, regulation, and business culture. Second, it connects those teams through shared values and a systematic institutional process covering capital allocation, diversification, macro analysis, sector selection, investment committees, and due diligence. Local expertise supplies contextual judgment, while the common operating system supplies quality control and repeatability. The result is neither a loose collection of independent dealmakers nor a centralized team imposing foreign assumptions. It is an integrated platform capable of producing consistent outcomes across highly distinct markets while retaining the insights that only local practitioners possess.
Origin
Jean Eric Salata developed the model while expanding Baring Private Equity Asia across China, India, Japan, Korea, Southeast Asia, and Australia. Single-country funds were then the norm, but his team sought to build one regional investment program.
Core principles
- 01Local markets require local knowledge
- 02Shared culture connects geographically dispersed teams
- 03Investment skill is necessary but insufficient for institution building
- 04Standardized diligence protects quality across markets
- 05Common processes should preserve local judgment
How to run it
- 1
Map Local Differences
Identify the cultural, legal, political, linguistic, and commercial differences that materially affect decisions in each market.
Pro tip Focus on differences that alter sourcing, diligence, governance, or execution rather than cataloguing every cultural distinction.
Watch out Treating a broad region as one homogeneous market creates blind spots.
- 2
Recruit Local Leaders
Build an on-the-ground team of respected professionals who understand the market and can cultivate durable local relationships.
Pro tip Choose people capable of collaborating across borders, not only strong individual performers.
Watch out A nominal local office without real authority does not provide genuine local insight.
- 3
Build a Shared Culture
Define the values and behaviors that allow diverse teams to trust one another and operate as one institution.
Pro tip Reinforce the culture through hiring, promotion, ownership, and everyday decision-making.
Watch out Values displayed but not practiced will not connect geographically dispersed teams.
- 4
Standardize Core Decisions
Create common frameworks for capital allocation, diversification, sector themes, macro analysis, and investment approval.
Pro tip Standardize the questions and evidence required while allowing locally appropriate answers.
Watch out Excessive centralization can erase the local advantage the model was designed to capture.
- 5
Institutionalize Due Diligence
Apply systematic diligence and quality-control standards to every market and transaction.
Pro tip Use the same minimum evidence thresholds across offices.
Watch out Allowing each dealmaker to invent a separate process produces inconsistent risk.
- 6
Refine Through Outcomes
Compare results across markets, identify mistakes, and improve the shared system without abandoning local autonomy.
Pro tip Review both failed deals and successful deals that benefited from luck.
Watch out Do not mistake one market cycle for proof that the platform is permanently optimized.
In the wild
BPEA recruited teams in markets including India and Japan while connecting them through a common culture and systematic investment processes. Rather than operating as unrelated country funds, the teams shared approaches to underwriting, diligence, capital allocation, and investment committees.
→ The platform grew from $25 million to roughly $25 billion under management before combining with EQT.
A European software investor entering Southeast Asia hires experienced leaders in Singapore, Indonesia, and Vietnam. Each team develops local relationships, but all investments must pass the same evidence-based diligence and portfolio-construction process.
→ The firm gains local access while maintaining comparable risk standards across countries.
Common mistakes
Managing the Region from Headquarters
A centralized team may apply assumptions that ignore local regulation, relationships, and business culture.
Creating Independent Fiefdoms
Local teams without shared culture or processes become unrelated dealmakers rather than an institution.
Standardizing Every Detail
Uniformity becomes counterproductive when it prevents teams from adapting execution to local conditions.
Is it for you?
Best for
It is best for organizations building a regional or global platform that depends on deep local relationships and judgment.
Not ideal for
It is not ideal for businesses that can serve every market centrally without meaningful local adaptation.
From the transcript
“beyond that, it's really about building a team.”
“it now local with locals, where you have local teams”
“It's not just random.”
From the episode
Riding Global Tailwinds with EQT's Jean Eric Salata
Jean Eric Salata