Jiuding Capital: Private Equity Firm with Chinese Characteristics Case Solution

Founded in 2007, Kunwu Jiuding Capital Co., Ltd. (hereinafter referred Jiuding) is a Chinese private equity (PE) specializing in equity investments in pre-IPO stage undertakings. Despite its short history, the company has achieved a strong presence in the PE industry in China with its enormous growth and return on investment dazzling. As of 2011, 260 employees had Jiuding and 6 funds denominated in RMB RMB 6 billion under management. As investors showed strong enthusiasm for the company, however Jiuding had generated considerable debate in the community of practice in Vanguard Investment PE – known as the “model” factory that PE investment activities are conducted in a manner similar to the industrial scale production. This model has reversed the traditional business practice of PE in many ways. Concerns have been raised about whether or not the business model was sustainable Jiuding during the next ten years, given the rapidly changing landscape of China’s PE industry.
by
Li Liao,
Jia Ning,
Zhao Ziqian
Source: University of Tsinghua
19 pages.
Date Posted: December 31, 2011. Prod #: TU0027-PDF-ENG
Jiuding Capital: private equity fund in case solving Chinese characteristics

Jiuding Capital: Private Equity Firm with Chinese Characteristics Case Solution
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