Western Investment Business
Thirst for Globalized Asset Allocation
For more than three decades, China has experienced spectacular growths, and a massive amount of wealth has been accumulated in the hands of a relatively small number organizations and individuals. As asset prices go through the roof and returns languish, investors who just a few years ago enjoyed the benefits of a fast-growing economy that seemed to mask any problem are gradually realizing that the golden era of “whatever you do, you make a fortune” is a thing of the past. A slowing economy, a harsher political atmosphere and the expectation of a depreciating currency crystallize into a new trend among Chinese investors: a globalized asset allocation by investing in better performing, developed economies such as the US is not just necessary, but urgent.
Desire for Global Reach
Businesses in China, on the other hand, are facing massive overcapacity, rising costs of capital, raw materials, land and labor that are approaching those in the US, and stagnant productivity due to lack of technology and IP protection. "Going outside" of the country for new markets, new technology, better business environment or simply a global presence have become a topic of hallway conversations in offices and events around the country. With the wealth they accumulated during the heydays, they’re well-positioned to do so.
Elate Partners' “Overseas Investment” Business
Elate Partners started its “overseas investment" business more than five years ago and was a pioneer in serving the needs from Chinese investors and businesses alike for private equity and venture capital investments outside of China. With our comprehensive resources built specially for such needs and our innovative people, we source deals and manage the entire investment and exit process for them. We typically co-invest our own money in deals that we do in a minority position along with our bigger clients, which boosts our own return and allows us access to bigger deals. The size of our investment, therefore, depends on how big our clients are, and that ranges from a few million to a few handred million dollars.
For globalized asset allocation, we’re primarily interested in asset-heavy deals such as oil and gas, mines, real estate, infrastructure and privately-placed securities. For globalized presence, the diverse nature of our clients with this need means that we’re interested in businesses in all sectors, but look for those with solid market access and channels, or those with state-of-the-art technologies or access to such.