Private Equity Investment Practice In China

The past two decades have seen a substantial increase in the Private Equity (PE)investment in the globe. As the pioneers of PE investors, venture capitalists have beenin China for about 10 years. Besides the huge capital that the oversea PE investorsbrought here in China, the sophisticated expertise in building the corporategovernance, financial strategy, global connections is essential to facilitate thedomestic companies' oversea presence. By putting the global practice with the realexperience here in China, this paper is targeting to analyze PE investment from theaspects of corporate governance and financing strategy. There are 4 Chapters in thispaper: Chapter one introduces the concept of Private Equity and the structure of PEinvestment;Chapter two briefs the global practice of PE investment and points outthat China is getting more and more attention from the global PE investment;Chapterthree and Chapter four are the main body of this paper, aiming at what the domesticcompanies can learn from PE investment. Combined with the two latest caseshappened in China, PE issue was analyzed from the two aspects of corporategovernance and financing strategy.