June 4, 2015
How should investors evaluate opportunities in China? What are the key factors for successful investment in the country? And just how can entrepreneurs raise funds from investors to grow a business?
Delegates from around the world gathered in Shanghai in March to learn about these and many other topics at the inaugural China Investment Forum, organized by the IMD Alumni Club Shanghai and the University of Macau’s Greater China Centre for Private Equity.
Keynote presenter Michel Brekelmans of L.E.K. Consulting told attendees that investors should pay more attention to the due diligence process before committing capital, arguing that there is plenty of liquidity flooding into China and it is important not to overpay. Later, Olympus Capital’s Edan Lee, the other keynote speaker, advised potential investors to be aware of the risks that they face in order to generate the returns that they desire. This theme continued in a panel session moderated by Kelvin Fu of Inventis Investment Holdings, where a number of investors reiterated the critical importance of careful due diligence when investing in emerging economies.
Chris Lerner of Eaton Partners spoke on the way in which the global investment landscape has evolved, and emphasized that investing in China requires nuanced understanding of the local culture; he recommended that outside investors tap into the knowledge of local experts. One way of doing this – by entering into a partnership – was the subject of a presentation by John Ng of SMC Capital China, who highlighted the importance to his company of having reliable business partners in the legal, financial services and operations domains when working with portfolio companies in China.
A later panel, moderated by Vladimir Malenko of Youxian Investments, some of the winning investment strategies adopted by funds operating in the region, while Chris Tay of YPX Holdings presented a case study that gave a different perspective: the challenges that entrepreneurs face when raising capital to finance growth – including the need to face countless rejections.
The final panel of the day examined the ways in which investors can help companies to grow. Panelists, led by Tencent’s Duncan Kuo, shared their own experiences of helping their portfolio companies to grow, and the challenges that they faced in doing so.
The two-day event, which was subtitled “Perspectives from Private Equity”, also included a host of general networking opportunities and specially arranged one-on-one business meetings that connected interested parties to exchange ideas, discuss deals and explore collaborative opportunities.
Find out more about IMD Alumni Club Shanghai