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 […]

Man on the Moon

By Andrew Woodman   In 1999, Derek Sulger turned his back on a career with Goldman Sachs to start a company in China. Fifteen years on, having founded mid-market consumer buyout firm Lunar Capital, he has no regrets.   “YOU HAVE GOT TO BE FREAKING KIDDING ME!” This is the approximate response that Derek Sulger, […]

China VC: The Virtuous Circle

By Tim Burroughs   China’s VC market is evolving as funds started by or raised from founders of first-generation internet firms. Concerns about conflicts of interest must be addressed, but the influence of their ecosystems will grow.   Just over two years ago, Andrew Teoh passed up a role on Chinese e-commerce giant Alibaba Group's […]

Maximizing Value through Building Platforms

Platform-building is woven into Lunar’s DNA. The business that began as Linktone in 1999 subsequently gave birth to two further companies, Intrinsic and SmartPay. Together they formed the bulwark of Fund I and each of the three has now been fully exited, generating attractive returns. Another platform-building opportunity arose when we acquired Yeehoo in 2011. […]

Lunar Monthly Update

IPOs have been the dominant exit form in China since 2007, creating an “IPO-or-Bust” mentality among the Chinese private equity community that is characterized by an overwhelming focus on public markets. A corollary has been the “Pay-up-for-PIPES” trend. From 2005-2010, PIPE or Mezzanine/Pre-IPO transactions have accounted for over half of private equity deals in China, […]