Private equity roundup – China

China sees continued private equity (PE) activity amid a year of historic change.

The last decade has seen China embark upon one of the steepest growth trajectories in history, resulting in enormous social and economic transformation. Now, the country is poised to see additional change in the form of political transition.

Amid an environment that continues to evolve, PE investors remain active. Global and domestic shops alike continue to open new offices, develop deeper relationships with China’s business community and help a growing number of businesses and entrepreneurs grow their companies.

Many PE firms are expanding the types of investments they are making in the region, moving beyond traditional buyout and growth capital deals into:

  • Real estate
  • Distressed debt
  • Special situations
  • Turnarounds and other investments

Regulators are continuing to work with industry leaders to manage the influx of capital, and erase some of the ambiguity that defines China’s emerging capital markets and private investment environment.

As we embark upon a new year, PE investors will continue to pursue a wide range of opportunities across China’s dynamic economy. They will assist China’s economy in preparing for the next phase of its growth journey, by:

  • Increasing companies’ operating expertise
  • Elevating management competency
  • Raising governance standards

However, PE firms must be more disciplined than ever in the sourcing and selection of deals.

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