Background
We have been investing in mainland China for over a decade, initially as an LP focused on China’s growth capital pre-IPO opportunity, and today as a GP with a sole focus on the mid-market.
We entered China’s private equity market in 2005 as a growth capital focused LP, benefitting from unprecedented economic growth and a generous IPO environment.
Background
We have been investing in mainland China for over a decade, initially as an LP focused on China’s growth capital pre-IPO opportunity, and today as a GP with a sole focus on the mid-market.
We entered China’s private equity market in 2005 as a growth capital focused LP, benefitting from unprecedented economic growth and a generous IPO environment.
Pre-IPO model in distress amid rapid emergence of buyout market
China’s economic slowdown and prolonged IPO freeze exposed serious weaknesses in GPs’ portfolio management capabilities and highlighted the liquidity and performance risks associated with minority investments. Moreover, the lack of qualified local mid-market buyout GPs at a time of rapidly growing control-investment deal flow exacerbated our concern that an unprecedented opportunity was being missed. As a result, we started to build our own in-house direct lead capability.
Entering China’s mid-market
We made our pilot buyout investment in 2015 by partnering with local and international investors to acquire control of leading health foods player Yanzhifang. Since then, we have completed our transition into the mid-market as a GP with full lead capability, from sourcing to post-investment portfolio management.
