CPE’s Investment Objectives and Strategy
CPE aims to provide its shareholders with a consistent return on investment through asset appreciation or capital gain, focusing on:
- Pioneer deals
- Undervalued assets
- Proprietary technology or exclusive operating status
- Distribution channels to Chinese consumers
CPE is absolutely focused on returns, with a target annual IRR of 30-35%, delivered via:
- 1-3 year investment horizons (except for strategic investments)
- Exit through trade sales (65%) or initial public offerings (35%)
- Early to expansion stage businesses having synergies with existing portfolio
CPE’s investment approach is focused on alternative assets in selected industry sectors is industry oriented, with a focus on TMT and Financial Services.
- Private equity (approximately 80%)
- Listed companies going through MBO, re-restructuring, or other corporate events (approximately 20%)
- Industry focused: Telecommunications / Media / Technology (“TMT”) (75%); Financial Services (25%)
TMT
Investing in niche and proprietary businesses within the telecommunications, media, and technology sector, which is a highly regulated and knowledge-intensive area with high entry barriers and the potential for significant investment returns. Such businesses include electronic content distribution, online games, wireless applications and cyber cafe franchises.
Financial Services
Investing in wholly foreign owned financial institutions operating in China, or successful fund managers based in Asia, with a common objective to provide flexibility in deal structuring, portfolio management, and/or additional exit opportunities to the CPE portfolio.