Third Season of PE in China -- 2016 Annual Meeting of JD Capital Fund Held in Hangzhou
A significant initiative in China’s “new normal” economy has been the supply-side structural reform. Private equity has experienced two seasons of rapid growth—one driven by growth investment and another by Pre-IPO investment. Now, PE institutions come to embrace the third season themed “M&A integration”.
JD Capital is ready to enter the era of M&A
On May 26, JD Capital held the “2016 Annual Meeting of JD Capital Fund — The Future is Coming: Third Season of PE in China” in Xixi, Hangzhou. Private investors, corporate representatives and JD Capital staff talked about the economic landscape, shared investment strategies, and exchanged ideas on M&A, in an attempt to contribute their share to the economic reform.
At the invitation of JD Capital, Bai Chong’en, renowned economist and assistant dean of the School of Economics and Management of Tsinghua University, was present at the meeting to share his understanding on some hot issues such as the “new normal” economy and the supply-side reform. Cai Lei, chairman of JD Capital, gave a keynote speech on “The Future is Coming: Third Season of PE in China”, in which he described the evolution of China’s PE sector and JD Capital’s new strategy in the era of M&A.
During the discussion session in the afternoon, He Qiang, CEO of JD Capital, and You Yiyang, vice president of JD Capital, introduced two major M&A models adopted by the company: M&A through industrial integration and M&A through cooperation among leading companies. At the sub-forums, vice presidents Wu Qinggong and Qian Pengfei discussed detailed model implementation plans with representatives of well-known listed enterprises.
The Third Season of PE: M&A brings growth opportunities
Since 2015, China’s economy formally shifted from the “era of 7%+ growth” to the “era of 6%+ growth” since 2015. For PE, with the characteristics of both industrial capital and financial capital, this is a time of challenges and more importantly opportunities. As the supply-side reform proceeds, leading enterprises in various industries have the potential to become world-class through M&A, and through integration-oriented M&A led by PE institutions, fragmented industries will become more concentrated and bellwethers will soon emerge.
Compared with other countries, China still has a high economic growth rate. Growth investments still have a big room to grow for they are intended to meet new demands and help new industries thrive. High-growth enterprises will spring up in multiple areas given China’s huge market and great tolerance for innovation. PE institutions shall continue to seize the opportunities brought by growth investment.
The future is coming! Together with its partners, JD Capital is determined to make the third season of PE a new success.
More speeches of the 2016 Annual Meeting of JD Capital Fund are to be released. Thank you for your attention.