Beijing Capital Equity


Beijing Capital's strategy is to make minority investments in high growth, profitable, small-to-medium sized enterprises (SMEs) located throughout China that operate in sectors which have strong macro trends and will benefit directly from China's government policies, particularly from the Central Government's Five Year Plans. Beijing Capital believes these companies are the best candidates for IPOs on the domestic stock exchanges in China, particularly because these are the types of companies that the PRC government encourages to IPO domestically. Beijing Capital focuses on clean energy and environmental protection, industrial technology, agriculture technology and biological science and pharmaceuticals as the primary sectors that fit these criteria, although it also invests in high growth, profitable companies in other sectors as well.

Our strategy is to focus on the liquidity event. We believe that having comfort with the liquidity event is the most critical aspect of private equity investing in China, and thus, we invest in companies that have a clear path to liquidity event, mostly in the form of IPO in Shenzhen, and trade sales in China and internationally.

We seek companies located around China that have strong management teams, and operate with integrity. We also seek companies where we can add value through the networks and expertise of our management team, as well as through the infrastructure of Beijing Capital Group. We like to invest into companies where we can add value through Beijing Capital Group's other business subsidiaries that focus on small-to-medium enterprise finance, including its two investment banks, First Capital Securities and Beijing Capital Securities that specialize in investment banking for small-to-medium sized enterprises in China, and its two loan guarantee houses that guarantee loans to 7,300 small-to-medium sized enterprises in China, as well as through our substantial networks amongst the business community in China, particularly amongst the circle of other large state-owned enterprises around the nation.

Beijing Capital is the confluence of Chinese Market Acumen, International Expertise, and Beijing Government. Once dominated by international fund managers, we believe that private equity in China is now a local business. At our core, we are Chinese, with most of our professionals being local Mainland Chinese. As a local business, and having top local Chinese private equity professionals with Chinese Market Acumen at the core of our management team is key to sourcing the top deals, engendering trust with entrepreneurs, conducting in-depth due diligence, and making intelligent local market savvy investment decisions in China. We also have best-of-class International Expertise and networks in the form of management and international partnerships. A fundamental differentiator of Beijing Capital is that we are a local Chinese private equity group that adheres to international standards of corporate governance, transparency and management, and we believe we are the only government-affiliated private equity management team in China that has non-Chinese amongst our management. This confluence of Chinese Market Acumen, International Expertise, and Beijing Government is fundamental to our strategy and we believe, is the leading model for private equity in China today and into the future.