China's domestic markets are seeing private investment rapidly slow down. Per the SCMP:In May, growth in private investment stood at just 1 per cent year on year, down from 15 per cent early last year. Meanwhile, as a portion of overall investment in the country, private investment shrank to 62 per cent by the end of May, the lowest level since 2012 and down from 65 per cent a year before. I am not an economist, so take the following with a large grain of salt. In one of our email exchanges with friends active in the markets we were given … [Read more...] about Nervous Officials Stonewall Deals in China
American Senior Care Companies & Strategic Capital Partners in China
Over the course of the last five years, we have seen up close the internal justifications companies use to explore China change.
The first wave of explorers were the hard-core entrepreneurs, the visionaries, the people who had built the senior living industry in their own home markets, and now saw a similar opportunity in China.
The second wave were similarly motivated, but more cautious and as such, less willing to be the first one in or to take all the development risk given the unknowns. Many of these players established beachheads by offering consulting services, a very smart way to explore China, get under the hood of the earliest projects, and determine if bigger opportunities might be right for them.
The third wave of companies, which we are just beginning to see take shape with our help, are senior living operators that want to identify strategic capital partners in China. This endeavor can take a couple of different forms, and to determine which is best for you it is critical to understand what is motivating potential investors from China in the western senior housing sector.
In this archive, we've put together all of our writing and thinking on this complicated topic. Check back often because our thoughts on strategic capital partners in China are coming fast and furious these days. If you have any questions you'd like us to write about, let us know.
Articles re: Strategic Capital Partners in China
- What motivates outbound foreign investors in the senior care sector?
- More information about investor motivations...?
- What does a win-win look like?
- What are the regulatory/SEC issues involved?
- Eb-5s are a bad idea, right? Right!
- Are Chinese nationals legally investing in the US when they buy real estate? And, how is that different from finding a trusted Chinese investment partner?
- What does it mean when I see that Chinese outbound investment is being more heavily scrutinized by Chinese regulators these days?
Americans Buy Chinese Companies & Start Out With High Hopes This story I'm about to tell you is short and its vis a vis of nothing. But it's important in the context of a 2016 when Chinese M&A is in the news. If we step out of the realm of SMEs and completely into the realm of large multinational corporations, one of the favored ways to make a splash in the China market is to buy up promising emerging companies that do what the acquiring company does, but with local clients. In this sort of acquisition-based expansion strategy one of … [Read more...] about Chinese M&A in America, Culture Matters
Over the last several years, a significant part of our practice has revolved around helping western healthcare companies understand not just China, but their broader international strategy. As I've written about in the past, our engagements usually come in one of two forms: up front, when we can help drive strategy or after the fact, when we help clean things up - typically around a JV that needs to be dissolved, a territory that needs to be shut down, or a specific part of their business that just isn't performing like it needs to in order … [Read more...] about Think Global, Act Local
I wrote this piece on senior living communities and Chinese investors before seeing a couple of critical articles in Caixin and the New York Times involving new barriers to the AnBang deal. Therefore, I am going to add this thought to the front of this post because I think it is too important to bury at the end. Addendum: Senior Living Communities and Chinese Investors One of the deals that we have all been following is the AnBang $13 billion bid on Starwood hotels. Right now the news coming out of China (as reported by Caixin, but which I … [Read more...] about Senior Living Communities: Chinese Investment Risk
For more on our coverage of China Outbound Investment issues, see here:Shenzhen Housing Market and China Outbound Investment Motivations China Outbound Investment Regulation: Who Does It? American Senior Living Operators & the Hunt for Strategic Capital Partners in China Chinese outbound foreign investment: setting the Stage for a Win-Win-Win China real estate: are Chinese nationals legally investing in the US? The Eb5 Program Will NOT End Well, so Do NOT Depend On ItGet Money Out of China: The Reality Has … [Read more...] about Get Money Out of China: Two Types of NOs
Why the New Focus on China Strategic Capital Partners? Over the course of the last five years, we have seen how the internal justifications companies use to explore China change, and now with the emergence of China strategic capital partners things have come full circle. The first wave of explorers were the hard-core entrepreneurs, the visionaries, the people who had built the senior living industry in their own home markets, and now saw a similar opportunity in China. The second wave were similarly motivated, but more cautious and as such, … [Read more...] about China Strategic Capital Partners & American Senior Care