Media coverage
Dealstreet Asia spoke to Brooke Zhou about opportunities and challenges in the Chinese private equity market
After LGT Capital Partners co-led the closing of IDG Capital’s USD 500 million continuation fund, Dealstreet Asia interviewed Brooke Zhou, Partner at LGT Capital Partners, about current dynamics in the Chinese private equity market. Brooke indicated that she has observed a rise in continuation vehicles (CVs) and identified contrarian opportunities in China.
The article highlights the growing investor interest in secondary opportunities as macro market challenges and a recovering IPO market continue to weigh on fund distributions in China. Despite having once been viewed as a niche solution associated with distressed assets, CVs have become a mainstream feature in the secondary market for high-quality assets.
While secondaries represent the “crown jewel” of contrarian opportunities in China, primary fund investments have decreased, partly due to lower GP fundraising activities in the market. Only a few GPs in China are fundraising with explicit targets and concrete timelines for closing funds. According to Brooke, this reflects GPs' realistic view of sustained fundraising activities in the market.
Brooke points to difficulties for GPs in the current market environment unless they have something special, a loyal LP base and a very strong track record. Even then, there is no guarantee that fundraising targets can be met.
Read the full article here (behind paywall) and find out more about our approach to secondaries in Asia-Pacific here.
