The Development Strategy Of Jiangsu Jinmao's Private Equity Investment

Private equity fund,by definition,is procured by a private fund-raising and mostly used to make leveraged-buyout transaction with unlisted companies.As a result of providing working capital to target companies to achieve profit expansion,eventually,after any one of the following events including IPO,merger,acquisition or management buyout,a return is earned by selling the investments in target companies.During the last few years,the private equity market has grown fast in China and become one of the most outstanding regions for its international reputation.As a highly adaptable investment method,private equity investment has effectively promoted national economy,capital market and portfolio companies.Nowadays,an increasing amount of researches on private equity investment has been conducted by foreign scholars.Back to 1970s,there were a host of debates on the basis of private equity investment,however,early this century;a feasible and reliable theory on it was agreed by professional individuals,including scholars in this area,experienced investors and governors.Although this market may start relatively late in China,it has been a main focus in Chinese financial research area.Jiangsu Jolmo Capital.,Ltd(Jolmo Capital)has become a professional assets management companies after a series of transitions in Jiangsu province.On the base of Jolmo Capital,analyzing the strategies for each of the four operation stages,fund-raising,investment,management and exit,this article will introduce their practice and successful cases.Meanwhile,combining both microscopic and macroscopic analysis with quantitative and qualitative operation,it provides the approach to make reasonable judgment according to comparable company law,comparable trade law,asset approach and PEG valuation method.The main issues in Jolmo Capital are summarized through PEST analysis,SWOT analysis,Porter's Five Forces analysis and BCG Matrix analysis.Learning from those popular private equity companies including Jiuding Capital,Co-win venture Capital and Heaven-sent Capital in China,it helps improve Jolmo's development strategies and strengthen the four operation stages.With respect to the risk management,Jolmo Capital may perform more joint and successional investment with controllable risks,for examples,convertible bond.On the other hand,it helps train professional and comprehensive talents by assembling team for specific fields.For those portfolio companies,Jolmo Capital offers value-added services to help them improve inside value besides proper communications.Any part of the opinions or suggestions in this article can be served as a reference for Jolmo Capital or other private equity companies.