Mission Hills Capital Partners: Why the Buzz around Investing in China?

Oct. 14, 2010 - PRLog -- Interview with: Doug Pocock, President and Chief Executive Officer, and David Wright, Director of Research, Mission Hills Capital Partners Inc.



Private equity investing in China is truly a local business. The most important decision investors have to make is in their selection of an investment partner, as local knowledge is critical, say Doug Pocock, President and Chief Executive Officer at Mission Hills Capital Partners Inc. and David Wright, Director of Research.

From a privately held merchant bank at the marcus evans Canadian Institutional Investment Summit 2010 in Gatineau-Ottawa, Quebec, October 25-27, Pocock and Wright share strategies for capitalizing on China, the global economic success story.

What makes China an attractive place to invest in?

Doug Pocock: The opportunity is enormous due to the ongoing, consistent expansion of China’s middle class. China has overtaken Japan to become the world’s second largest economy. It has the world’s largest and fastest growing middle class and consumer market at over 300 million people. Its economic growth is likely to continue to significantly outpace North America and Europe for the foreseeable future. Today is China’s golden age of investment.

How can investors capitalize on the opportunities on offer?

Doug Pocock: The best way for foreign investors to capitalize on the growth of China’s middle class is through private equity investments, as most foreigners are precluded from investing in public companies.

Our preferred investment approach is to study domestically oriented industries that are supported and encouraged by the Chinese government. We work with local investment partners to target high growth private companies well suited to a domestic or international public listing or alternate exit strategy over a three year investment horizon.

David Wright: As with any investment process, consideration must be given to the industry profile, existing competitors, the potential barriers to entry the company possesses, as well as the company’s valuation. The management team’s stability and track record are also key factors, as is the breadth and demand profile for the company’s products.

Particularly in China, successful investment strategies also require a thorough understanding of local culture and the persistence and patience to establish rich local trust relationships. We strongly advise against investors attempting a “go it alone” strategy in China, as experience, local knowledge and relationships are critical success factors in private equity investing. One of our partners, Shenzhen Oriental Fortune Capital, is among China’s prominent domestic private equity firms. Dr. Wei Chen, founder, has been recognized as one of the ten most influential financial people in China and has a longstanding and eminent track record of investment success. The combination of international capital markets expertise and Chinese domestic knowledge and reach offered by Mission Hills Capital Partners and its partners offers an exceptional resource for institutional investors.

Which industries would you recommend?

Doug Pocock: Our preferred sectors include government endorsed industries such as new energy and materials, information technologies, consumer goods, healthcare and education. We like companies that rank within the top three in their industry segment. Additionally, we like companies that possess significant barriers to entry and those which utilize technology to create a low cost infrastructure enabling maximization of profits as scale is achieved.


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About the Canadian Institutional Investment Summit 2010

This unique forum will take place at the Hilton-Lac Leamy, Gatineau-Ottawa, Quebec, Canada, October 25-27, 2010. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The summit includes presentations on risk management, the outlook on the fixed income market, and liability driven investment strategies.

For more information please send an email to info@marcusevanscy.com or visit the event website at http://www.ciisummit.com/DougPocockDavidWrightInterview

Please note that the summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit http://www.marcusevans.com  

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About Mission Hills Capital Partners Inc.

Mission Hills Capital Partners (MHCP) is a private equity firm providing investors access to successful domestic businesses benefiting from the ongoing rapid growth of China’s middle class. One of its partners, Shenzhen Oriental Fortune Capital Co. Ltd, is among China’s largest and most successful private equity firms. Through its experience and partners, MHCP offers a unique blend of international fund management, advisory and capital markets expertise combined with exceptional knowledge, reach and record of investment success in China.

www.missionhillscapital.com