The article on Forbes.com "Private Equity In China: Too Much Money, Too Few Deals" explores some of the issues confronting the Chinese private equity industry. The article points out how "official" statistics may understate the actual situation, as unofficial estimates indicated that at the end of 2011 there were more than 10,000 venture capital and private equity firms in China, while official estimates were for 882 such firms. As the title implies, the article argues that there is too much money in China and a shortage of good deals. The article points out other issues, including:
The article is an interesting read. Here's the link:
http://www.forbes.com/sites/jackperkowski/2012/08/08/private-equity-in-china-too-much-money-too-few-deals/
- The advantage local firms have over international firms (they can act faster and have more exit options);
- Debt financing is difficult to obtain in China; and
- The rise of Yuan-denominated funds.
The article is an interesting read. Here's the link:
http://www.forbes.com/sites/jackperkowski/2012/08/08/private-equity-in-china-too-much-money-too-few-deals/
