From growth equity to leveraged buyout : making private equity investments in China

Abstract

Private equity investments are divided into the five main categories: venture capital, mezzanine capital, growth equity, leveraged buyouts, and distressed investments. Currently in China, growth equity is the major type of private equity investments. The thesis will focus on the investment process of growth equity deals in China. Specifically, the thesis will analyze the challenges in deal sourcing, valuation and due diligence processes, deal structuring, and exit strategies. Private equity sector in China is in its early stage of development and evolving quickly with huge potentials untapped. While in the developed countries like the U.S., leveraged buyouts is the main stream of private equity investments, this type of deals is emerging in China. The thesis will explore the potentials of leveraged buyouts in China through analyzing the capital market landscape of the country and the case studies.