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.
PAG is an alternative investment management firm with $16 billion assets under management across private equity, real estate, and absolute return funds. The company has offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo, Singapore, Sydney, and Seoul. PAG Asia Capital, the firm’s private equity arm, manages $2.5 billion and invests in consumer and retail, food and beverage, financial services, technology, media, and telecom, healthcare, industrials and transportation, and energy and natural resources.
Beijing: (010) 8588.2998; Shanghai: (021) 6010.6100; Shenzhen: (755) 2654.3900; Hong Kong: (852) 2918.0088
In April 2016, PAG Asia Capital, along with Apex Technology, acquired Lexmark International for $3.6 billion. Lexmark, based in Lexington, Kentucky, manufactures laser printers and imaging products. In September 2014, PAG Asia Capital, along with DTZ, TPG Capital, and Ontario Teachers' Pension Plan, acquired Cassidy Turley. Cassidy Turley, a commercial real estate services firm, will merge with DTZ after the acquisition.
After the joint acquisition of Cassidy Turley, PAG Asia Capital, along with TPG Capital, and Ontario Teachers' Pension Plan, also acquired DTZ for $1.2 billion in June 2016.