The Chinese economy has grown from $2 trillion to $9 trillion in 10 years; this rapid rise in GDP has resulted in both mammoth corporations sitting on mountains of cash and extraordinarily wealthy individuals.
With the economic liberalization, there has been a large number of industry leading companies moving from government ownership into private hands via public listing. With a scarcity of investment opportunities, the valuations of these mega companies have now resulted in growing pressure from shareholders to convert such financial strength into realizable assets. While there is some scope of domestic consolidation, foreign investments and acquisitions are craved by all players with ambitions of maintaining their leading position.
In more recent years, there has also been a steep increase in the amount of revenue generated in foreign currency, especially US dollars. With ongoing challenges for the conversion of foreign currency in China, many larger fund holders are seeking to redeploy capital into the US.
Without any internal resources to manage foreign investments, many public (and some private) companies have pooled capital with private equity funds, using them to identify, execute, and manage investments. Yet, with very little cross-border experience or deal flow networks themselves, these funds are under pressure from their benefactors to deploy capital.
Where TPP Healthcare fits
We have established relationships with many major healthcare investors and funds; they increasingly rely on us to bring opportunities that match their priorities and help bridge the cultural gap that has often derailed past deals.
We work on an exclusive representation basis, a simple agreement that prevents circumvention and rewards us based on successful deals.
Connect with us to discuss opportunities to secure equity investment from China.