Many China-invested private equity (PE) funds and foreign direct investments in Chinese companies established over the last eight years are now struggling for exits.
Mahon China has helped clients — including Limited Partners of funds, development finance institutions and banks — exit and realise value from more than 20 foreign investments in China.
Mahon China began managing China-focused PE funds in 1992, as one of the country’s first PE fund managers.
We have managed five PE funds, ranging from single-investor and traditional GP/LP-structured funds to listed investment companies with more than 1400 shareholders in multiple jurisdictions.
Mahon China is currently General Partner of a PE fund for European and North Asian public- and private-sector interests. We also manage a range of direct investments on behalf of large institutional investors.
Selected PE track record
> Mahon China developed a plan to restructure and recapitalise a diesel engine manufacturer to allow the company to buy out the fund’s equity stake. The company relocated and shifted its product focus to diesel-engine power supplies, which are now sold throughout China and in 10 export markets.
> Mahon China helped a large steel manufacturer to develop and introduce higher-margin products into the market, which the company supplied to VW and General Motors. With Mahon China’s assistance, the steel company’s profits grew seven-fold in two years. Mahon China sold its equity stake when the steel manufacturer was granted initial listing approval.
> Mahon China negotiated an exit from an investment in a major condiment manufacturer by leveraging the company’s breaches of contract. The exit constituted an IRR of approximately 22%.