Jiuding Capital: Private Equity Firm with Chinese Characteristics Case Solution

This Case is about VENTURE CAPITAL

PUBLICATION DATE: December 31, 2011 PRODUCT #: TU0027-PDF-ENG

Established in the year 2007, Kunwu Jiuding Capital Co., Ltd (hereinafter referred to as Jiuding) is a Chinese private equity (PE) business that concentrate in equity investments in late-stage, pre-IPO companies. Despite its brief history, the company had secured a solid foothold in China’s PE sector with its huge increase and dazzling investment yields. As of 2011, Jiuding had 260 workers and 6 RMB-denominated funds with 6 million RMB under direction. While the investors revealed strong excitement for the company, Jiuding still had created much discussion in the PE community about its initiating investment practice – known as the “PE factory” version where investment actions were carried out in a way similar to large scale industrial production. This version has subverted the PE company practice that was standard in a variety of manners. Concerns were raised about whether the business model of Jiuding was sustainable in the following ten years, given the rapidly-shifting landscape of China’s PE sector.

Jiuding Capital Private Equity Firm with Chinese Characteristics Case Solution
Jiuding Capital: Private Equity Firm with Chinese Characteristics Case Solution
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