Philosophy    |    Investment Case

Investment Objectives
The principal investment objective is to invest primarily in companies organized or operating primarily in Mainland China, Hong Kong, Macau and Taiwan with particular emphasis on consumption, retail, manufacturing, technology and environmental-related industries, investment in other industries will also be considered from time to time.  The Fund’s targeted net internal rate of return of 20-25% per annum over an investment horizon of 2 to 4 years per investment.

Investment Policy
The primary focus is on securing significant minority stakes in high growth private enterprises with leading position in their respective market segments.  The Fund will seek to have Board representations in proportion to its investment to ensure strategic issues are decided to benefit both the company and its shareholders.  The Fund intends to invest in companies and industries where it can add value and grow with the portfolio companies through assistance in strategic areas, including corporate governance, internal control and risk management, expansion or strategic acquisition, and financial advisory.

The investment amount by the Fund per target companies will normally be around US$20 to US$50 million.  The Fund aims at exiting those investments through public listings, strategic sales or other structured alternatives, or partial realizations made possible by the cash generative nature of target companies with an average investment horizon of 2 to 4 years.

Target Investments
The Fund targets primarily to invest in high growth companies headquartered or operating in the Greater China Region.  The candidates are either leader in their respective industry or geographic region, or high growth companies in sectors with strong potential.  The Fund will favour well-managed private enterprises founded by a visionary management with capability to aggressively implement a value creation strategy.  The management of target companies should have common objectives and aligned interests with its financial partner.

Companies which are market leaders generally possess a number of attractive characteristics including:

  -strong management team/owner;
  -a cost leader or superior pricing power;
  -differentiated technologies or products with high barriers to entry;
  -ability to attract loyal customers; and
  -high growth potential with strong cash generative business models through various business cycles.

These companies can offer the potential for higher growth, profitability and premium valuations on exit.  They are also far more resistant to recessionary pressures and therefore provide superior downside protection through economic cycles.

Geographically, the Fund will focus its identification of candidates mainly from the more developed areas in mainland China, particularly the Yangtze River Delta, the Pearl River Delta and Bohai Gulf areas.  Southwestern part of China will also be able to offer strong and solid growth opportunities.  

2008 Bull Capital Partners Limited. All rights reserved.   l    Terms and Conditions of Use / Disclaimer