CPE’s Investment objectives and strategy include:

a. 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

b. Absolute return driven (target annual IRR of 30-35%)

• 1-3 years investment horizon (except for strategic investments)
• Exit through trade sales (65%) or initial public offerings (35%)
• Early to expansion stage businesses having synergies with existing portfolio

c. Alternative assets on selective industry sectors

• 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%)

The investment approach of CPE is industry oriented where it focuses on TMT and financial services.

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 significant investment return potential.  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.