Comprehensive Analysis of Five Key Trends for 2009 in Private Equity, Venture Capital and M&A Markets in China
HONG KONG, SHENZHEN, China and LOS ANGELES, March 5 /PRNewswire-Asia/ -- China continues to be the world's most robust emerging market for private equity and venture capital finance, even in a difficult global economic environment, according to a report just released by China First Capital, Ltd., a boutique investment bank with offices in China, Hong Kong and the USA.
The report, "Private Equity and Strategic M&A Transactions in China 2009", is downloadable at China First Capital's website (http://www.chinafirstcapital.com ) and also through a dedicated link (http://www.chinafirstcapital.com/China_Private_Equity2009.pdf )
"While the overall investment environment remains challenging and the effects of 2008's turbulence are still being felt," comments Peter Fuhrman, China First Capital's Chairman and the report's author, "2009 will be a year of unique opportunity for private equity, venture capital and mergers and acquisitions in China."
China First Capital is an investment and merchant bank with focused leadership on serving China's middle market private Small and Medium Enterprises (SMEs), assisting them with capital-raising strategic M&A and other financial transactions. Unlike traditional investment banks reliant mainly on short-term transactions, China First Capital's role as financial and strategic advisor to Chinese SMEs often begins at early stages of corporate development and continues through the capital raising process from private equity to a successful IPO and beyond to global leadership.
China's economy continues to grow, powered largely by these successful small and medium private businesses, many of which are among fastest-growing companies in the world. Private equity and venture capital investment in China will likely reach record levels in 2009, the report projects, with over $1 billion in new investment into high-growth Chinese SMEs with strong focus on China's booming domestic market.
"In 2009, China should rightly be among the most attractive -- and active -- private equity investment markets in the world," the China First Capital report predicts. "Many of the international private equity firms we work with are expecting to invest more in Chinese SMEs in 2009 than in 2008. Chinese companies raising capital this year will enjoy significant financial advantages over competitors, improving market share and profitability."
The report identifies five central trends that will drive the growth in private equity and venture capital investment in China's SMEs in 2009. They are: (1) the drive for industrial consolidation; (2) profit growth helping to reignite the IPO markets for Chinese companies in China, Hong Kong and the USA; (3) increased importance of Convertible Debt and other hybrid financings; (4) opportunities for strategic mergers and acquisitions; (5) well-financed businesses with strong balance sheets will enjoy sustainable competitive advantage in China's domestic market.
"The pathways to success in China are fewer and narrower than in recent years," explains China First Capital's Peter Fuhrman. "But, for the entrepreneurs and private equity investors that can navigate their way in 2009, this will be a year of abundant opportunity."
For more information, contact:
Peter Fuhrman
Chairman, China First Capital, Ltd.
Website: http://www.chinafirstcapital.com
Report: http://www.chinafirstcapital.com/China_Private_Equity2009.pdf
China Private Equity Blog: http://www.chinafirstcapital.com/blog
Phone USA: +1-310-709-3642
Phone China: +86-755-3322-2093
Email: info@chinafirstcapital.com