Private Equity
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PRIVATE EQUITY Lam Ching Johnny2008060135
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Lam Ching Johnny2008060135. Private Equity. Outline. What is Private Equity? - stages of investment - types of equity transaction - investment process Private Equity in Asia - China - Hong Kong The Blackstone Group L.P. What is Private Equity?. Long term equity funding - PowerPoint PPT Presentation
Transcript of Private Equity
PRIVATE EQUITY
Lam Ching Johnny2008060135
Outline What is Private Equity?
- stages of investment- types of equity transaction- investment process
Private Equity in Asia- China- Hong Kong
The Blackstone Group L.P.
What is Private Equity?
Long term equity funding Young and fast growing
companies Enhances liquidity No burden of collateral High risk
Stages of investment
Stages Source of FundSeed owner’s capitalDevelopment owner’s capitalExpansion startup venture
capital(high risk)Mezzanine development capital Buyouts buyouts
Types of equity transaction
Types Sizestartup venture capital
US$1m - US$5m
development capital
US$5m – US$30m
buyouts US$20m to overUS$1 billion
Investment process
Initial Evaluation and Negotiation
Due Diligence
Final Negotiation and Completion
Monitoring
Exit
Private Equity in Asia
two main markets – China and India
changing economic structure
industry deregulation
high demand for funds
Private Equity in China
poorly developed, mainly foreign private equity companies
excessive regulation
poor enforcement of Intellectual Property Rights
social issues
Private Equity in Hong Kong gateway to China
benefit from deregulation in China
excellent infrastructure and skilled finance manpower
The Blackstone Group L.P.
NYSE:BX
1985, financial advisory company
June 27, 2007 completed IPO (totaling $4.13 billion)
The Blackstone Group L.P.- latest focus
Cleantech
Infrastructure
Zhonghua Development Fund
