Sourcing Chinese Consumer Transactions
Our investment management process begins with our unique approach to sourcing transactions in our focus industries. The key component to our sourcing methodology is an industry insider approach: our management expertise and operational involvement in fast moving consumer goods (FMCG), apparel, accessories, specialty-retailing and related sectors provides us with the ability to identify and capitalize […]
Delivering Value Creation
Much of the discussion of our operational involvement in our portfolio revolves around growing top line revenues, controlling costs and streamlining decision making. These are goals that we must drive through deeper, more granular involvement in our companies. This month we highlight some of the areas for improvement within our businesses that have been particularly […]
Incentivizing Minority Shareholders in a Buyout Deal
Chinese private equity has been overwhelmingly characterized by pre-IPO deals and growth capital investments whereby PE returns were driven by the deployment of investment capital, not human capital or sweat equity. Most firms lacked the culture, will and expertise to take on operationally challenging investments. Meanwhile the scale of buyout opportunities has grown, driven by […]
A Solution to Stress and Succession
Stressed out sextuginarian and septuginarian entrepreneurs are saddled with succession issues, as are their quadregenriarian and quinquagenerian brethren. A 2013 survey of privately-held small- and medium-sized private enterprises conducted by Shanghai Jiaotong University found that 70% will face succession issues within the next five to ten years, and less than 20% of next-generation heirs and […]
Meet Our Managers – Jerry Mao
Jerry Mao Partner at Lunar Capital In many ways, Lunar is a boutique, and has not had the privileges associated with buying a large firm over the past few years. We chose not to focus simply on fundraising and growing our AUM, but rather took on the challenge of differentiating through our unique focus on […]
Two Meetings, One Goal: Rebalancing Toward a Richer Consumer
In China’s recent Liang Hui — the annual meetings of the National People’s Congress and Chinese People’s Political Consultative Conference — raising the size and living standards of the middle class were the primary policy objectives. China believes the answer is to urbanize, raise disposable income, and widen the social security net. These new policies […]
Investment Snapshot: China’s Dairy Industry
Given the increase in food safety awareness, China’s dairy sector has attracted renewed interest as the reality takes hold that scandals will push consumers toward buying products from larger, branded players. In seeking out attractive consumer businesses, we have looked at a number of dairy companies. Many have had challenging histories. Consumer spending patterns for […]
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, […]
Lunar Capital gets 60% stake in Chinese beverage brand
By Alvina Yuen Lunar Capital Management has acquired a majority interest in Sichuan Zhiqiang Group, an integrated food manufacturer located in western China, in a deal worth up to $50 million. Through the purchase of a 60% stake in the 15-year-old Sichuan-based beverage brand, Lunar Capital has formed a new Chinese-foreign joint venture corporation to […]
