How Private Equity Can Add Value in China—The Talent Opportunity and Challenge

Most of the deal themes in China are growth-related, with the technology and consumer sectors accounting for more than half of the deal volume. In addition, the country has seen a jump in outbound deals and increased activity thanks to the opening of state-owned enterprises to private investors, according to PwC. Many are recognizing that private equity can add value to the portfolio company by refining the portfolio company’s strategy and, in a total buyout, refresh the leadership team to better align with the company’s new direction. Even in scenarios where the PE firm does not take a full ownership stake, it can help identify areas for growth, fill clear skill gaps or help the company build relationships it otherwise may not have access to, such as with multinational corporations.