Anne Bai Deep Private equity group does not do speculators Zhang into a European PE sharp weapon

When the world economy is in a precarious time, a stable expectation, a risk-filled unknown, which one would you choose? No matter what others will do, anyway Zhang chose the latter. At the end of 2008, the deep private equity investment group was formally advanced to mainland China, Zhang became the first president of Greater China.　　Previously, Zhang, who was born in Shanghai, has "rooted" McKinsey, the chairman of McKinsey's Shanghai branch and the first managing director of McKinsey's more than 80-year history, in 15. McKinsey's name has long been thunderclap in China, and there are few who know it. In fact, the international private equity in the field, but a veritable "big shot."　　Headquartered in London, the company was founded in 1969, witnessed and participated in private equity investment in Europe, the rise and prosperity, now it has been ranked the top ten in the Global PE list. It is strong, but in China's strategy it is clearly behind the PE giants such as Carlyle, Blackstone, TPG, KKR and CVC.　　Today, those PE bosses who have entered China early have all scored a "one piece" of China's rapid economic growth. Although the Chinese strategy in the late one step, but in the election of people, Ann Bai did not let its opponents.　　In the Black Stone recruited Antony Leung, KKR will be the name of the adviser to Liu, Tian, Mary was invited to join TPG, the olive branch to the local and industry background deep Zhang. When Carlyle entered China and aimed at small and medium-sized state-owned enterprises, KKR focused on traditional industries, and TPG showed unusual interest in the financial services sector, what would the "appetite" in China be like? What is the "sharp weapon" that overtakes the competitor?　　As the Zhang of the strategic executive in the Greater China region, what is the original vision? "Late" European PE these PE people and from China's political, business, art and other people have done more than 60 interviews, even including migrant workers.　　The final conclusion is that China is "both interesting and puzzling". Four years ago, Gabriel began its global strategy. Unlike other PE giants, in Asia, it first chose India.　　In other words, when Carlyle was in China's reputation for the Xugong takeover, it was a big deal in India. In fact, during this period, the Chinese market in the deep also did not idle, according to Zhang said, "has been in the build-up, mainly market research, network and resource accumulation, such activities from 2005 since the establishment of the Hong Kong office has lasted until 2008 years." "Interestingly, in the first one months of the formal entry into mainland China, the company's headquarters also focused on more than 40 partners around the world to China, on the one hand to understand China, on the other hand, other branches of the world to better meet the development of China's business." These PE people and from China's political, business, art and other people have done more than 60 interviews, even including migrant workers.　　The final conclusion is that China is "both interesting and puzzling". "The whole of Asia in the group's global Strategyare in a very important position, and China and India are the two most bullish markets. China's development fundamentals are very healthy and can be seen by taking the lead in achieving a recovery. We are bullish on China's potential.　　"Zhang said. In the second half, "Hunter," We spend a lot of time looking at a business, usually held for 5 years or even longer. We are not accustomed to doing that kind of short-term investment, such as 6 months before the vote, 6 months after. "As one of the world's top ten pe, Ann Bai deep skill is not bad, but Zhang most want to say is-industry focus." A look at the partnership structure will make it clear that Zhang's words are not just concepts. In the deep, 75% of the partners were either CEO of the company or from the management consulting industry.　　In other PE institutions, most of the partners come from the financial sector of investment banking. "The capital operation of finance is not necessarily the most outstanding, but more adept in management and industrial experience accumulation." Zhang said, this makes the company culture extremely rich characteristic, "an important idea of the Bai deep is to add value to the enterprise and not to make trouble." "So far, the deep in China is still" lurking, "no case has been disclosed. It still has 10 billion dollars to maneuver, with the largest amount of money to invest in Asia at $2.5 billion trillion.　　At this point, other funds may not be so lavish, such as the recent Carlyle Asia Growth Fund Management of the 1 billion U.S. dollars, more than 90% of the funds have been cast. Ann Bai deep like the high growth of enterprises, which seems to be less in line with the nature of PE, more suitable for the "appetite" of VC, but this natural "DNA" so that Ann Bai deep in Europe to obtain a good profit.　　In the past 10 years, the average annual profit growth of the companies in the company has reached 16%, much higher than the growth rate of European GDP.　　Does the pursuit of high growth favor aggressive investment style? "Too radical a investment is often the end of the loss, we will spend a lot of energy to look at a business, the general holding time in 5 years or even longer time." We are not accustomed to doing that kind of short-term investment, such as 6 months before the vote, 6 months after. "Zhang said.　　[Page]　　"Stubborn" investment law in this particular market environment in China, Zhang special mention two areas: one is sales of retail industry, the other is the health industry. It is "stubborn", and its global investments are limited to five major areas: consumer goods and retailing, technology and High-tech, healthcare, media and financial and business services.　　This is the core investment area of the deep delineation. "We are not the same as other organizations, not have the opportunity to vote, such as I personally very optimistic about the real estate market, but the company will not invest in real estate."　　Zhang repeatedly stressed that this is the "characteristics" of the Bai deep.　　In this particular market environment, Zhang specifically mentions two areas: one is consumer goods and retail, the other is health care. "China's biggest feature now is that the process of urbanization is irreversible and more than 200 million people are likely to move from rural to urban in the next 30 years."City, the opportunity is also irreversible, which is the most fundamental power of domestic demand. We feel that China in the consumer goods, retail sector will be a rapid development of a piece, this includes not only the first-tier cities, there are two or three of the rise of urban consumption. "The medical and health industry is Zhang has long been aimed at, you know, this area is the strength of the bai deep." It is currently the largest private hospital holding group outside North America and has a large number of hospital assets worldwide, including the largest private hospitals in the UK and India.　　In China, Zhang cannot find a long-term reason for not bullish on the industry. "With the development of the health system reform in China, the process and details of some reforms are being released gradually, but there will be great opportunities in the next two or three years, including hospitals and drug companies." "PE" Dead Bulls "" in the European open stock market, the entire 10-year average annual return on investment is only 0.1%. The average annual return on PE investment is 18.3%.　　"Like the stock market, for the future of PE, some people look empty, some see more, and Zhang is a typical" dead bulls. "In open securities markets, such as the open stock market in Europe, the average return on investment over the 10-year period is only 0.1%." This means that 10 years ago you put 100 dollars in, 10 years later is also almost 100 yuan, while the return of the top 10% of PE's annual average return on investment is 18.3%. "PE or Chaoyang industry, the reason is very simple-in all financial services, PE is relatively least affected by the crisis." The IPO is sure to recover, and of course it will be longer and the return on investment may be lower, but it will have little impact on long-term investors. In turn, the current cost of entry is also falling, for PE, any one year investment and exit is not entirely proportional, a good PE is the time to invest more than the return of less, and vice versa.　　"With several years PE in China's Landing, rooting, in the pattern more and more mature at the same time, the camp is also changing, in addition to foreign PE, the current RMB funds are also in rapid development." Some experts predict that 2009 will be China LP (limited partner) Troop "troops" one year, after the Social Security Fund to open up investment PE funds, brokerages, trusts and other institutions have invested in PE, commercial banks, insurance institutions direct investment business is also expected to be opened this year.　　According to conservative estimates, there will be 300 billion to 600 billion of the bank funds, 200 billion of the insurance funds into the PE industry. This means that just entering China soon, the Bai Shen not only to face the competition of foreign PE, but also face the rise of RMB funds.　　However, Zhang heart. "They may be more complementary than competitive, and there are some areas where foreign investment is limited, and there is no limit to renminbi funds." But in the total amount of the fund, foreign currency or more than the renminbi, so there are some advantages of foreign currency in the investment quota. But on the whole, the future RMB Foundation is growing rapidly, 35 years later, RMB funds will exceed foreign funds."Opportunities are fleeting, especially when China's economy is stabilizing. Now Zhang frequent exchanges between Shanghai and the field, perhaps the first investment in China will soon be met.