Invest in China’s Consumers, says PE veteran
Amid a slowdown in China’s economy, the consumer sector remains relatively buoyant with Nielsen’s consumer sentiment index in Q2 2013 rising two index points to 110 from the previous quarter, and up four points from same period last year. Lunar Capital founder and managing director Derek Sulger, who is based in Shanghai, spoke to AsianInvestor […]
The Evolution of Retail Formats in China
China’s retail format is evolving as Chinese consumers grow wealthier and savvier. To generate sustainable growth going forward, businesses need to upgrade their retail platforms. Generally speaking, in developed markets where GDP per capita reaches USD 8,000, new retail formats, such as supermarkets, shopping malls and hypermarkets tend to become more attractive to consumers. China […]
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 […]
Change Afoot for Investors in China’s Retail Sector
As the economy slows and midtier brands lose favor with consumers who are switching to premium brands and to shopping online, China's retail sector is changing. The result is that private-equity firms that once bet on sky-high consumer growth are now buying into restructuring situations or into companies that cater to more-sophisticated tastes. “Going from […]
Lunar Invests in Chinese Beef Snack Company
Shanghai private equity firm Lunar Capital has bought a majority stake of about 70% in Chinese snack food maker Guizhou Yonghong Food Co., committing up to $50 million to the company. The deal represents one of a handful of Chinese buyouts in a market where private equity investors typically take minority shareholdings in portfolio companies. […]
Private Enterprises and Debt Markets in China
One of the biggest challenges for small- and medium-sized private enterprises in China is debt financing. A recent study conducted by Development Research Center under the State Council showed that while 66.7% of the SME see bank loans as the primary source of financing, more than 62% of the SMEs are unable to acquire them, […]
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 […]
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 […]
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 […]
