Leveraged buyouts, growth capital, angel investments, and seed funding—these private transactions take place, largely out of the public’s eye, not only in Connecticut or Silicon Valley, but also in Beijing, Shenzhen, and Shanghai.
In 2016, China’s private equity (PE) and venture capital (VC) firms raised over $70 billion, more than 20% of total such funding globally. At the same time, these firms also deployed capital to the tune of $223 billion, accounting for more than 70% of global PE/VC investments.
As late comers, these Chinese firms have rapidly grown into formidable financiers. Most Chinese PE firms are particularly interested in products and services that can be commercialized and scaled up quickly in China. They tend to invest in areas that align with China’s shift to a more consumer-driven economy. Meanwhile, Chinese VCs have been active players globally, particularly in Silicon Valley. They have focused on areas such as artificial intelligence, Internet of Things, and electric vehicles.
CDH Investments is an alternative investment fund with $17 billion assets under management, 61% of which is dedicated to private equity. The firm has invested in over 180 companies ranging from industrial manufacturing, consumer products, and medical and financial services. It also supports domestic Chinese companies with their international investments and expansion.
Wu Shangzhi, Jiao Shuge
Beijing: (010) 8507.6999
CDH Investments held 34% stake in Shuanghui International and financed its $4.7 billion acquisition of Virginia-based pork processor Smithfield Foods in 2013. CDH has sold nearly all of its stake in Shuanghui as of today.