Role of Chinese Private Equity in a Complex Environment
During the fourth quarter of 2015 and into the first quarter of 2016 as our teams assembled this report, Chinese capital markets were extremely volatile, with most equity-focused hedge and long-only funds reporting being down double digits. Despite these worries, we remain of the view that 2016 is starting out in a very similar fashion […]
Control Investing in China | AVCJ Video Interview
The key to persuading a Chinese entrepreneur to give up control of a company is not to approach him as a private equity firm, but as someone who knows how to run the business, says Derek Sulger, a partner at mid-market consumer buyout firm Lunar Capital. “We can do that because the types of […]
Crouching Tiger, Hidden Opportunities; Luxury firms find growth in Asia despite China slowdown
“It’s not about market dynamics,” said Kelly Hu, an associate at China-focused private equity firm Lunar Capital, “It’s about finding the right brands and the right products for the right market segment.” Hu was speaking at the 16th Fashion & Luxury Goods Industry Meeting, celebrated at IESE’s Barcelona campus this month. The meeting was […]
The Design of Intelligent Cities are Changing Consumption in China
Multi-faceted efforts are being made to transition China’s economy from a reliance on fixed-asset investment to that of market-driven consumption. As announced with China’s 13th Five-Year plan, civil engineers are designing and developing “Smart Cities”. Under this plan, local and national governments are making targeted efforts to address urban resource shortages, pollution, traffic congestion and […]
Lunar 2016 Outlook Remains Positive
We started 2015 with enthusiasm for the Chinese consumer, A-shares generating 53% annualized returns, and healthy private equity performance. This year begins with severe pessimism about China’s economic transition, public markets all sharply lower, and private equity returns in question. One friend complained that his clients were demanding to know why anyone even still focuses […]
