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 […]
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, […]
Market Update – The Hidden Affluence of Chinese Households
This month we examine an important question in understanding the power of the Chinese consumer. Is the level of consumption higher than government data suggest, and are China’s rich being captured by official statistics? A recent China Daily editorial called on the Chinese government to enact measures to ease personal tax burdens, break up monopolies […]
Lunar Capital revives King of Walnuts
Shanghai-based private equity fund Lunar Capital Management has acquired a majority stake in Sichuan Zhiqiang Group, the once-prominent walnut producer that later emerged from bankruptcy. Lunar Capital paid US$50 million, including the buyout fee and capital injection, and the firm will be renamed Sichuan Zhiqiang Food. Derek Sulger, a partner at Lunar Capital, said it […]
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 […]
Lunar Capital partners Pinco Pallino to expand in Asia
By IPA staff Lunar Capital will partner Pinco Pallino S.p.A. to develop the luxury children’s wear brand, I Pinco Pallino, in China and East Asia. The partnership will involve establishing a joint venture in seven key East Asian countries. Lunar Capital will take a majority stake in the joint venture through an affiliate, and will […]
China Yeehoo Sells Control to Lunar Capital, Its Affiliates
China Yeehoo Group Ltd., a Guangzhou-based Chinese baby products retailer, has sold a controlling stake to Lunar Capital Management Ltd. and its affilates. Yeehoo’s existing management team will remain a substantial minority shareholder of the company, while Lunar Capital will appoint a majority of the board of directors and second members of its operation team […]
