Private Equity Outlook – Auspicious Signals from the New Leadership
The news cycle this fall was dominated by the change in leadership of the Chinese Communist party ahead of next year’s government transition. The initial signs emerging are encouraging and support our thesis about China’s development into the next decade. Most reports highlighted the efforts that incoming President Xi Jinping and Prime Minister Li Keqiang […]
PE Asia – Slow squeeze
China’s retail sales have doubled in three years, but slowing GDP growth is worrying GPs with retail investments. Michelle Phillips reports. In numbers, China’s retail sector is booming. Revenue and profit have both doubled over the past three years, with sales of over RMB 532 billion (€65 billion; $85 billion) in 2011, according to Thomson […]
The Implications of Rising Disposable Incomes in China
This month we examine the impact of rising disposable income in China. Chinese disposable incomes grew at a CAGR of 19.3% from 2008-2011. Over the same period, nominal GDP grew at a CAGR 14.6%. A stronger consumer class, driven by higher wages, is emerging while the old model of export-led growth is no longer viable. […]
Pricey listings unlikely to return HK listing drought and poor sentiment on the mainland hits private equity industry strategy
The wave of pricey share listings in Hong Kong and on the mainland driven by strong buying momentum is unlikely to be repeated soon, a senior executive of Blackstone said yesterday. Michael Chae, a senior managing director and head of international private equity at the New York-based investment firm, said the listing drought in the […]
(Still) Pitching PRI
By Michelle Phillips Responsible investing and Asia would seem to mix like clean water and oil. China and India are ranked among the worst polluters in the world, according to the 2012 Environmental Performance Index, and in many emerging markets, profitable industry trumps quality of life issues at the policy level. Global investors have been […]
E-Commerce, with Chinese Characteristics
Rising Chinese consumer demand is evident is e-commerce, or more specifically, online retailing. While this sector has not been a direct focus of our investment activity, it is an important and growing distribution channel for many brands and products produced by our portfolio companies. As the marketplace evolves, beneficiaries are becoming apparent – notably, brands […]
Asian funds trend toward country-specific
By Michelle Phillips As private equity in Asia matures, more country-specific funds are expected to emerge as part of a larger trend of localisation and specialisation. Private equity in Asia has been going through a stage of upheaval since the meltdown of 2008, and firms are under increasing market pressure to demonstrate how they differentiate […]
Doubts over take private and re-list
Firms that take US-listed Chinese businesses private and hope to re-list them on Asian stock exchanges may be disappointed with returns, according to an industry panel. By Clare Burrows Private equity firms capitalising on the plummeting share prices of US-listed Chinese companies by doing take-private deals could be disappointed with returns, according to an industry […]
For one China fund: it’s not the size that counts, but what you do with it
It’s a phrase not usually associated with private equity, but it actually rings true for one China-based firm, Lunar Capital Management, where the theme is: keep things small. The Shanghai-based Lunar has around $250 million in assets under management and is thinking about raising for a new fund to invest in Chinese companies, next year, […]
Beijing’s Bicycle Rolls Onwards
What a difference 18 months makes In March 2011, we commented that investors were paying irrationally high valuations for PIPE and pre-IPO investments where the opportunity to add value was negligible. Companies listing on the ChiNext achieved valuations of one-hundred times their aggressive earnings forecasts. Venture firms were using Facebook as a comparable for Chinese […]
