Lunar in the News


The crystal ball: Predictions for 2017

From LPs looking for realizations from GPs as well as paper gains, to the factors contributing to more buyout opportunities in China, industry participants give their perspectives on the year to come:BRIAN LIM, PARTNER AT PANTHEON, ON THE LP PERSPECTIVE: Sentiment has been more subdued on Asia. You will see some fundraising noise that comes through from the timing of some large funds coming to the market, so maybe the figure to focus on is the average over two or three years....

Read more 2016-12-13 | AVCJ

Lunar Partner Robin Song addresses the 2016 China 500 Strong Enterprise Summit

2016年8月27-28日,云月投资合伙人、中国/北京股权投资基金协会执行副会长宋斌应湖南省委省政府及中国企业联合会邀请,在长沙出席2016中国500强企业高峰论坛,并在以“产融结合提升企业价值”为主题的金融家企业家对话专场发表专业观点。 本次论坛以“创新与转型:‘十三五’的大企业发展”为主题,由中国企业联合会主办,湖南省人民政府协办,长沙市人民政府承办,第十届全国政协常务副主席、中国企业联合会暨中国企业家协会会长王忠禹,湖南省委书记徐守盛,省长杜家毫,国务院国资委副主任王文斌,工业和信息化部总工程师张峰等领导同志出席致辞,来自中国500强企业的领导人、世界500强企业中国区的高层领导人、知名专家学者和金融机构负责人、主流传媒代表等数百人出席会议。   云月合伙人宋斌在2016中国500强企业高峰论坛产融结合专场的讲话 感谢中企联和主办方的邀请。云月投资是国际上以专注于消费行业投资,专注于控股投资,专注于深入运营提升价值而著名的并购基金,在并购界有一个“云月模式”之称,讲的就是云月投资这些年成功的经验方法和案例。中国及北京股权投资基金协会是最早一批为PE投资机构服务...

Read more 2016-09-01 |

China's Family Businesses Sell Out to Private Equity

After spending half his lifetime building the family snack food company in the eastern Chinese city of Hangzhou, Yao Weizhong had run out of steam. His 22-year-old son showed little interest in the business, and Yao needed fresh capital and expertise to keep it growing. So Yao, 48, chose a path taken by a growing number of Chinese entrepreneurs these days: He sold a controlling stake in his company, Yaotaitai, to a private equity firm. "The company is hitting a bottleneck," Yao, who...

Read more 2016-04-17 | Bloomberg

Control Investing in China | AVCJ Video Interview

The key to persuading a Chinese entrepreneur to give up control of a company is not to approach him as a private equity firm, but as someone who knows how to run the business, says Derek Sulger, a partner at mid-market consumer buyout firm Lunar Capital.   "We can do that because the types of companies we are acquiring tend to be in quite similar sectors," he explains. "If we own a babywear business we can have our babywear operating professionals approach kidswear businesses...

Read more 2016-03-17 | AVCJ Video

Crouching Tiger, Hidden Opportunities; Luxury firms find growth in Asia despite China slowdown

“It’s not about market dynamics,” said Kelly Hu, an associate at China-focused private equity firm Lunar Capital, “It’s about finding the right brands and the right products for the right market segment.”   Hu was speaking at the 16th Fashion & Luxury Goods Industry Meeting, celebrated at IESE’s Barcelona campus this month. The meeting was held in collaboration with ISEM Fashion Business School, and directed by Prof. Fabrizio Ferraro. Founding President of the Industry Meeting, Prof.Pedro...

Read more 2016-03-16 | IESE Business School

PEI Outlook 2016: China’s year of the Mid-market

In its World Economic Outlook 2016, the International Monetary Fund projects a slowdown in growth in China from 6.8 percent in 2015 to 6.3 percent next year – much lower than envisaged at the start of 2015. However, the government’s attempts to improve the quality of growth through structural reform and its nurturing of a consumer driven economy is providing opportunities for investment. Consumption in China will account for 60 percent of its gross domestic product (GDP) by 2020, according...

Read more 2015-12-23 | PEI

Robin Song delivered the keynote speech on the First Sino-South Korea Financial Cooperation Summit in Jeju Island

From November 19 to 21, 2015, Lunar Capital Partner Robin Song attended the First Sino- South Korea Financial Cooperation Summit in Jeju Island of Korea and delivered the keynote speech on promoting the collaborative development of Equity Investment Fund industry in both countries by jointly leveraging the historical opportunity from "the Belt and Road Initiative". Over 100 senior officials of governments as well as executives and experts from financial institutions and industrial and commercial...

Read more 2015-11-22 | Sina

Robin Song attended CAIJING Annual Conference 2016: Forecasts & Strategies

Caijing Magazine Annual Conference 2016: Forecasts & Strategies was held from November 17 to 19, 2015 in Beijing. Lunar Capital Partner Robin Song was invited to attend the forum event and the discussion session, and delivered the professional opinions regarding to the development of capital market, reform of financial regulation system and support for entity economy development. Caijing Magazine Annual Conference is well-known as one of the most authoritative, predictive and influential...

Read more 2015-11-19 | Caijing

Dining out

By Tim Burroughs Various PE firms have found success supporting Taiwan consumer brands in mainland China. But the food and beverage segment is an example of how picking the team, theme and time can make all the difference Starting from a single store in Taipei in the 1970s, restaurant chain Din Tai Fung has taken its brand across Asia and into the US. Shanghai is home to one third of the 18 mainland China outlets. In carving a niche in that city, the company has done what some doubted was possible...

Read more 2015-11-17 | AVCJ

Yonghong donations feed school children in Guizhou

Yonghong community outreach programs and initiatives have donated more than 1 million RMB worth beef jerky products to seven primary schools in Guizhou province from November 2 to November 11. The Company has been focused on buidling outreach programs to support local communities.

Read more 2015-11-10 | Yonghong

Robin Song shares his experiences at the China Capital Market Summit

During the "11th Beijing International Finance Expo", Lunar Capital Partner and Managing Vice Chairman of China Private Equity Association Robin Song hosted an event at the China Capital Market Summit on October 31, 2015.

Read more 2015-10-30 | Sina Finance

Robin Song at China Finance Annual Forum 2015

The China Finance Annual Forum 2015 was held on October 31, 2015. Lunar Capital Partner and Managing Vice Chairman of China Private Equity Association Robin Song attended and hosted the event.

Read more 2015-10-29 | Finance Sina

Robin Song at Chinese Fund Innovation Forum

Lunar Capital Partner and Managing Vice Chairman of the China Association of Private Equity Robin Song spoke at the "Chinese Fund Innovation Forum", on October 29, 2015 in Beijing.

Read more 2015-10-28 | CAPE

Robin Song at the 1st Building Decoration Internet Era Summit

Lunar Capital Partner and Managing Vice Chairman of China Private Equity Association Robin Song spoke at the 1st Architectural Decoration Internet Era Summit, co-organized by China Building Decoration Association and China Private Equity Association, on October 25th, 2015 in Beijing.

Read more 2015-10-26 | China Building Decoration Association

Robin Song's perspective on China's new normal

Lunar Capital Partner and Managing Vice Chairman of China Private Equity Association Robin Song provided his perspective on “China’s new normal” at the 12th China International Finance Forum held on October 22-23, 2015 in Shanghai.  

Read more 2015-10-22 | Sina Finance

Private Equity and the Evolving Chinese Consumer: An Interview with Derek Sulger of Lunar Capital

In a recent interview with EMPEA, Derek Sulger discussed the private equity landscape in the context of China’s recent volatility, and the prospects and challenges for Chinese consumer-related businesses.   How would you assess the current state of the private equity landscape in China, specifically in the context of recent volatility on the Mainland stock exchanges?   China’s economy is in better shape than the Western press would lead you to believe. The consumer goods...

Read more 2015-10-20 | EMPEA

Building blocks

By Holden Mann   As private equity continues to evolve in Asia, GPs want to recruit people with a wider array of talents – but industry participants are split on what skills these new hires should focus upon, and where to find them   “There's such a local talent pool pool of people who haven’t spent any time abroad, and that skill set is just as suitable, if not better, for doing PE in China,” explains a 29-year old vice president at a well-known China-focused GP. “For a Chinese American...

Read more 2015-09-28 | AVCJ

Jerry spoke at 2015 Global Buyout Forum

2015 Global Buyout Forum, jointly sponsored by China Association of Private Equity (CAPE), China International Investment Promotion Center, Beijing Financial Assets Exchange and Xiamen Municipal Bureau of Convention and Exhibition Affairs, was held in Xiamen International Conference Center in the afternoon of September 9, 2015. More than four hundred people from governmental agencies, foreign embassies in China, domestic and overseas investment institutions and industry associations participated...

Read more 2015-09-10 | CCTV Finance

Peekaboo at International Childrens Modeling Ceremony

On August 26th, Peekaboo sponsored the finals of the International Children’s Modeling Competition at the Grand Theater in Shanghai. During the show, over 150 children models wore Peekaboo clothing on the runway. The event furthered the brand’s goal of working with kids, letting them express their inner creativity and curiosity.

Read more 2015-08-25 | EF360

I Pinco Pallino Store Opening at Parkview Green

On August 20, 2015, I Pinco Pallino new flagship store opening in Parkview Green, one of top new malls in Beijing, with unique artist style. The opening gained the strong support and adoration from Zhang Zi Yi and popular Kid Star Tian Xing.

Read more 2015-08-20 | 61kids

Leading the Herd

By Holden Mann   Lunar has spent the last two years building Yonghong’s regional beef jerky brand into a national contender. The firm hopes to show the possibilities for progress that come with control deals.   In 2013, the management team at Guizhou Yonghong had a problem. Not with the business itself – the company, then nearing the end of its third decade, was one of the leaders in China’s crowded beef products market, and its Niutou brand of beef jerky was a regional favorite...

Read more 2015-07-20 | AVCJ

It's Not 1929 For China Stocks But VC Bubble Will Burst

It looks as though there wasn’t so much to worry about the collapsing stock market in China.   And that definitely proves Derek Sulger, a managing partner at Lunar Capital, right on in his predictions about the impact.  Indeed, China stocks had the biggest daily gain in six years.   “This is not 1929,” he said, speaking on a panel at an AVCJ forum in New York.  Having worked in China for 16 years, the private equity investor added that he has seen the Chinese stock market go through three...

Read more 2015-07-09 | Forbes

IPP 2016 Spring/Summer Collection at Pitti Bimbo

IPP presented its 2016 Spring/Summer Collection at Pitti Bimbo in Florence, Italy on June 27th. Maria Bogdanovich, a world famous designer and ballet dancer, was a guest designer for the collection. For more, please click here.

Read more 2015-07-02 | Weixin

Lack of Management Professionals is the Biggest Challenge for Majority Investments

 Yi Li spoke on panel “Value Creation in Private Equity Investing” at HKVCA 14th China Private Equity Summit 2015 on June 1. During the Summit, Yi Li was interviewed by Tencent Finance, click here to view the published article.

Read more 2015-05-31 | Tencent Finance

Lunar Capital's YR Cheng Spoke at ChinaVenture Annual Conference 2015

YR Cheng, Partner at Lunar Capital, spoke about buyouts at the ChinaVenture Annual Conference 2015 in Shanghai. The ChinaVenture Annual Conference is one of the biggest conferences in the PE/VC industry in China. For more, please read here

Read more 2015-04-23 | ChinaVenture

Lunar Ranked # 10 on “Top 30 Best Foreign PE Firms in China 2014” List

On April 23rd, the 2015 ChinaVenture Annual Award Ceremony was held in Shanghai. During the event, ChinaVenture Research Institute revealed their "China VCPE Industry Annual Ranking 2014". Lunar was ranked # 10 in the “Top 30 Best Foreign PE Firms in China 2014” and #21 in the “Top 50 Best PE Firms in China 2014” by ChinaVenture. For more about the rankings, please click here.

Read more 2015-04-23 | ChinaVenture

New Environmental Law May Herald Dawn for Corporate Social Responsibility in China

Since China's new environmental law came into effect on January 1, the number of penalties imposed on domestic firms has shot through the roof. But a closer look at what kinds of cases occur where reveals more about which local governments are really getting serious about responsible business.   Guo Peiyuan, co-founder and general manager of corporate social responsibility (CSR) consulting firm SynTao, told a private audience at the American Chamber of Commerce last week that while energy-focused...

Read more 2015-04-20 | China Economic Review

Little Star Launch Event Successfully Held in Shanghai

Little Star Launch Event and sHero International Women’s Forum were successfully held on Bund 3, Shanghai. For more on the event, please click here.

Read more 2015-03-06 | Little Star Brands Group

Man on the Moon

By Andrew Woodman   In 1999, Derek Sulger turned his back on a career with Goldman Sachs to start a company in China. Fifteen years on, having founded mid-market consumer buyout firm Lunar Capital, he has no regrets.   “YOU HAVE GOT TO BE FREAKING KIDDING ME!” This is the approximate response that Derek Sulger, founder and CEO of China-focused mid-market GP Lunar Capital, received from his colleagues when, in 1999, he announced that he would end his almost decade-long career at Goldman...

Read more 2015-02-09 | AVCJ

Meet Our Managers - Bin Shen

Bin Shen Vice President at Lunar Capital Lunar Capital focuses on private equity investments in China’s increasingly attractive consumer market. Over the past years, we have conducted in-depth analysis on the development of the consumer industry and its various subsectors. In particular, we are very optimistic about snack food. We are bullish on this industry and are aggressively pursuing opportunities to invest and build better businesses. We have a clear...

Read more 2015-01-30 | Lunar Capital

Meet Our Managers - Dragon Sun

Dragon Sun CEO, Yonghong Food I have worked in the FMCG industry for more than two decades and have served as the COO and General Manager of Budweiser, Master Kong Beverages, Nippon Paint and other enterprises. My preference for companies with renowned brands stems from my belief that high quality and reliable products are more competitive in the consumer market. Joining Yonghong was a natural step in my career, and I am excited to roll up my sleeves and work...

Read more 2015-01-30 | Lunar Capital

Celebrity Zhang Ziyi at Pitti Bimbo to Present I Pinco Pallino 2015 Fall Winter Collection

Florence, Italy: On January 22, international superstar Miss Zhang Ziyi attended the I Pinco Pallino 2015 Fall Winter Collection Release Conference at Pitti Bimbo.     As the first guest designer for the Italian fashion clothing brand, Zhang Ziyi designed the dress she wore to the event, an "adult version" made in accordance with the "kids' version" also designed by Ziyi.    For more, please click here.

Read more 2015-01-25 | PR Newswire

Yi Li Spoke at HKVCA Asia Private Equity Forum 2015

Yi Li, Partner at Lunar Capital, spoke on Greater China Panel at HKVCA Asia Private Equity Forum 2015 on January 21st, in Hong Kong. For more, please click here.

Read more 2015-01-20 | Lunar Capital

Joysun Signs “Champion·Family Life" Proposal

 “Champion·Family Life"  is China's first reality TV Show about the family life of Olympic champions. The show will be broadcasted on 50 local TV channels, including CCTV and Beijing TV. In total, there will be 52 episodes, released every Saturday night in 2015.   On January 12, 2015, the launching ceremony of "Champion · Family Life"  was held in Beijing. During the event, "Champion·Family Life" program launched the proposal "the Brand is Full of Champions Spirit". The proposal aims to spread...

Read more 2015-01-11 | Sina

I Pinco Pallino: “A Walk in Central Park”

I Pinco Pallino at Pitti Bimbo with the new collection and a preview of the capsule collection with the actress Zhang Ziyi. From the blue of a midwinter’s night’s dream in an enchanted garden to the animalier inspiration of an afternoon at the zoo; from the leaves of an autumnal greenhouse to the carefree hours spent in the park after school, through to the party atmosphere of a special celebration in a gazebo: a child's journey as imagined by I Pinco Pallino for autumn/winter 2015 covers the...

Read more 2015-01-06 | Pitti Immagine

Lunar Ranked as a “2014 Top 50 Foreign-Owned PE Company”

On December 4th in Beijing, Lunar Capital was ranked within the “2014 Top 50 Foreign-Owned PE Companies” in Zero2IPO Annual Awards. For more about the ranking list, please click here

Read more 2014-12-03 | Lunar Capital

Lunar Capital's Yi Li: Don't Follow the Trend of Early Investment, Focus on Post-Investment Value-Add

The 14th China Venture Capital & Private Equity Annual Forum organized by Zero2IPO was held at the Park Hyatt Beijing, on December 2nd to 4th, 2014. Yi Li, Partner at Lunar Capital, spoke on the panel "Investment Strategy: Changes in the Era of Innovation".  For more, see PE Daily.

Read more 2014-12-02 | Lunar Capital

Lunar Capital's Jerry Mao: Compensating for China-style LBO Investment

On November 19th 2014,  ChinaVenture held the 2014 ChinaVenture Investment Conference·Beijing at the JW Marriott Hotel. Lunar Capital Partner Jerry Mao attended and delivered a speech during the Investment Session: "On the Basis of Value Investing,  Excavating Opportunities during Reform". For more information and complete speech transcript (in Chinese) please click here.

Read more 2014-11-18 | ChinaVenture

Succession-planning Deals: A Matter of Legacy

By Andrew Woodman Long a feature of the developed markets private equity, succession-planning opportunities are beginning to pop up in emerging Asia. Regardless of geography, convincing a founder to sell his business is a challenge Over the course of three decades, Chinese meat snacks producer Guizhou Yonghong - best known for the popular Niutou jerky brand - has grown from a small rural operation to be one of the leading players in its market. The three founders, who set up the company...

Read more 2014-11-04 | AVCJ

Zhang Ziyi Endorses I Pinco Pallino Crossover Art Design Cooperation

On September 25, 2014, at Plaza 66 in Shanghai, international movie star zhang ziyi attended the flagship store opening ribbon-cutting ceremony of her favorite children's clothes I Pinco Pallino. During the ceremony, the first dress Ziyi ever designed was released under I Pinco Pallino's brand. It featured the coopearation between Ziyi and I Pinco Pallino.

Read more 2014-09-25 | Guangming

I Pinco Pallino and Zhang Ziyi Join Cross-Border Cooperation to Open Flagship Store in Shanghai Plaza 66

On September 25 afternoon, I Pinco Pallino held its grand opening ceremony in Shanghai Plaza 66, officially announcing the opening of its sixth store in China, and its first flagship store in the country. The flagship store occupies 62 square meters, with the most notable feature being a chandelier imported from IPP's flagship store in Milan, Italy. The chandelier is now transferred to the Shanghai flagship store like an Olympic torch for the I Pinco Pallino brand. The ribbon-cutting ceremony...

Read more 2014-09-24 | QQ

Lunar Capital’s Yi Li: Increasing Buyout Opportunities in Consumer Sector

On August 29, 2014, Lunar Capital Partner Yi Li delivered the keynote speech at the 2014 Annual ChinaVenture Investment Conference, held at the Grand Hyatt Hotel in Shenzhen. For more information and complete speech transcript (in Chinese) please click here.

Read more 2014-08-28 | ChinaVenture

Meet Our Manager - Luke Luan

Luke Luan COO, Little Star Brands Group With over 20 years of experience in operations and an affinity for building businesses, I chose to join Little Star Brands Group as COO to oversee the Company’s sales, merchandising and retail operations for all the brands including Yeehoo, Peekaboo and Soho Baby. Having served as COO in companies including Wal-Mart, Gome, Orient Home and Lilanz, I have a clear understanding of what it takes to scale...

Read more 2014-07-30 | Lunar Capital

Meet Our Managers - Stephan Tang

Stephen Tang CFO at Lunar Capital The Chinese private equity landscape is rewarding GPs with a clear investment strategy, proven discipline to reach goals, and clear governance processes in place that promote transparency and control. As CFO of Lunar Capital, a control-oriented investor focusing on consumer industry in China, my team is responsible for our firm’s finance, treasury, internal operations, and supporting the capital market activities of our portfolio...

Read more 2014-07-30 | Lunar Capital

China VC: The Virtuous Circle

By Tim Burroughs   China’s VC market is evolving as funds started by or raised from founders of first-generation internet firms. Concerns about conflicts of interest must be addressed, but the influence of their ecosystems will grow.   Just over two years ago, Andrew Teoh passed up a role on Chinese e-commerce giant Alibaba Group's mega IPO for a career helping companies get started on the journey that might end in a public listing. The world will soon find out whether Alibaba Group...

Read more 2014-06-02 | AVCJ

Lunar Capital’s Yi Li: IPOs not the only Method of PE Exits

On April 18, 2014, Lunar Capital Partner Yi Li delivered a speech at the 2014 ChinaVenture Investment Conference in Shanghai at the Grand Hyatt Shanghai. For more information and complete speech transcript (in Chinese) please click here.

Read more 2014-04-17 | ChinaVenture

In PwC’s Crystal Ball: More Deals, Funds to be Raised in China

By Sonja Cheung   Advisory firm PricewaterhouseCoopers is forecasting an increase of private equity and venture capital fundraising and deal flow in China during 2014.   Fundraising will “significantly rebound” this year following the resumption of domestic initial public offerings, PwC writes in its latest private equity outlook. With the exception of 2009, 2013 was the worst year since 2007 for private equity fundraising in the region, with just $33.1 billion raised, compared to $45....

Read more 2014-03-13 | WSJ

Quantifying ESG Outcome a Challenge

By Drew Wilson Quantifying ESG outcome a challenge: An ESG policy can result in cost savings, but it’s difficult to break out the numbers. Putting a dollar figure on savings resulting from an ESG policy is a challenging exercise few firms have attempted, partly because of the difficulty in isolating financial impact. “ESG has great potential for improving the bottom line and for cost savings, but that could come in 20 different avenues, some of which would be intangible,...

Read more 2014-02-23 | Drew Wilson

Meet Our Managers –Feng Gao

Feng Gao CEO, Yeehoo I have been working in the fashion and apparel industry for nearly 25 years, first with domestic brands before moving on to becoming the head of China operations for multiple multinational corporations (MNCs). Over the last decade, I served as the China director of Hermes, as well as the China Head of Bottega Veneta, helping to establish their respective Chinese businesses and to strengthen their overall brand image. In 2013, I graciously...

Read more 2014-01-30 | Lunar Capital

Meet Our Managers – YR Cheng

YR Cheng Partner at Lunar Capital Our portfolio is well positioned to benefit from both macro and micro trends in businesses that feed, clothe and provide other related materials to the Chinese consumer. How we realize and achieve success is highly correlated with our post-investment focus on (1) supporting proven management teams, (2) improving management processes, and (3) our proactive involvement in the operations of our businesses, which reduces uncertainties...

Read more 2014-01-30 | Lunar Capital

Asian Private Equity Uninspired by China IPO Thaw

By Paul J Davies Asian private equity managers have poured cold water on hopes that the reopened market for initial public offerings in China will spark a flood of profitable sales, and free up the industry to raise more money and stimulate deals. Private equity investors across Asia, and especially in China, have struggled to exit investments because IPO markets have been sluggish in Asia broadly and closed in China. Private equity groups in Asia have in the past relied heavily on stock...

Read more 2014-01-08 | FT

Value Creation: Shock and Awe?

Asian GPs are building up their operational resources to support portfolio companies, but the true value of expertise is knowing when and where to make influence count. A few years into an investment the deal executives at Pacific Equity Partners (PEP) are grilled by an internal operating committee on whether it is time to exit. The Australian GP buys underperforming market leaders, hires an entrepreneurial CEO and agrees a value-driven strategy to turn these companies around. But a mature...

Read more 2014-01-07 | AVCJ

PE Firms to Go ‘Ga-Ga’ For Kid-Focused Deals in China

By Sonja Cheung Private equity firms in China invested in baby or child-related companies received their Christmas present early this year, after the government announced it would ease its notorious one-child policy. The change in policy is a bid to boost the country’s ailing birth rate, and help balance out China’s aging population. Share prices of Chinese businesses, from education to children’s clothing, popped after the announcement was made earlier this month, and now at least one industry...

Read more 2013-12-04 | WSJ

PEdaily Profiles YR Cheng

PEdaily, a domestic Chinese PE database and news source, recently published a profile on Lunar Capital partner YR Cheng. For the complete article (in Chinese), please click here.

Read more 2013-12-04 | PEdaily

Derek Sulger: the Expansion of Middle Class in China

During an interview by PEDaily, a leading web portal in the venture capital and private equity industry in China, Derek Sulger shared his insight on the investment opportunities brought by txpansion of middle class in China.   For more, please click here.

Read more 2013-12-01 | PEdaily

Derek Sulger provides his Macroeconomic Perspective on the Asia Region

At the 2013 SuperReturn Asia Conference, Lunar Capital Partner Derek Sulger was interviewed by SuperReturn TV, and provided his Macroeconomic Perspective on the Asia Region. To see the video, please click here.

Read more 2013-10-01 | SuperReturn

Italian Luxury Childrenswear Brand Opens First Chinese Store in Shanghai

On September 18, 2013, I Pinco Pallino opened its first store in Shanghai's fashionable lifestyle landmark SOGO. Chinese consumers can closely experience the beauty and elegance of the Italian Luxury kiswear brand I Pinco Pallino. Over the next two months, I Pinco Pallino plans to set up the brand's flagship stores in Beijing and Senyang City.

Read more 2013-09-17 | Vogue

Invest in China's Consumers, says PE veteran

Amid a slowdown in China’s economy, the consumer sector remains relatively buoyant with Nielsen’s consumer sentiment index in Q2 2013 rising two index points to 110 from the previous quarter, and up four points from same period last year. Lunar Capital founder and managing director Derek Sulger, who is based in Shanghai, spoke to AsianInvestor during a recent visit to Hong Kong to discuss his view on PE opportunities in China’s consumer sector. Established in 1999, the China-focused private...

Read more 2013-08-18 | AsianInvestor

Meet Our Managers - Jerry Mao

Jerry Mao Partner at Lunar Capital In many ways, Lunar is a boutique, and has not had the privileges associated with buying a large firm over the past few years. We chose not to focus simply on fundraising and growing our AUM, but rather took on the challenge of differentiating through our unique focus on buying and building companies. This has set us apart from our peers, and earned us a reputation for leadership and for our focus on doing what is best for...

Read more 2013-07-30 | Lunar Capital

Asia-Pacific PE activities continue downtrend in H1, AVCJ reports

Private equity activities in Asia-Pacific have decelerated in the first half, continuing the downtrend from last year, Tim Burroughs, editorial managing director of Asian Venture Capital Journal (AVCJ), says. The region's private equity fundraising came to US$17.3 billion between January and June, the lowest six-month level since 2009, AVCJ research shows. That is a 24.1% decline from the second half 2012. About 38% of the capital allocated to Asia went to China in the first half. Of the US...

Read more 2013-07-15 | The Asset

China Private Equity Returns Plummet

HONG KONG, July 11 (Reuters) - Profits from China's private equity deals have fallen since 2007, a new industry report says, leading to a sharp decline in funds for small and mid-size companies in the world's second largest economy. China's private equity industry emerged later than its North American and European peers, but has become a vital source of growth capital for the country's smaller companies, which struggle to get regular bank loans. Private equity capital has fuelled companies...

Read more 2013-07-10 | Reuters

KKR tops rivals with largest Asia fund as valuations drop

By Stephen Aldred and Michael Flaherty A record $6 billion Asia fund announced by U.S. private equity firm KKR & Co on Wednesday will be deployed at a time when an economic slowdown and emerging market sell-off has knocked the overall value of Asia Pacific corporations to historic lows. While the market volatility should offer KKR opportunities to buy low, the record of the private equity industry in Asia shows that investing in the region is not as easy as it seems. Regulatory hurdles...

Read more 2013-07-08 | Reuters

Thinking Small Begins to Yield Results

Micro firms have big role to play in creating jobs and poverty reduction You can spot them all across China in different shapes and sizes, ranging from small restaurants, hair salons and shops to a host of enterprises that make a variety of goods. Though these micro and small enterprises have been largely inconspicuous, they are often the essential springboard for growth, job creation and social progress. Small and medium-sized enterprises in China have not exactly been in the pink of health...

Read more 2013-07-07 | China Daily

Dark Ages or Renaissance for China PE?

China’s private equity market is either going through the dark ages or a renaissance, depending on whom you ask, with advocates for both sides represented at the HKVCA China Private Equity Summit this week in Hong Kong. The deceleration of China’s economic growth and bottleneck in IPOs for mainland companies has had a knock-on effect on PE deal flow and exits, says Alvin Li, head of direct investment at CCB International Asset Management. As more than 95% of PE exits in China are through IPOs...

Read more 2013-06-13 | AsianInvestor

Fraud in China ‘Too Hard’ to Detect

Discovering fraud in potential investee companies is becoming more difficult, meaning many China GPs are steering clear of take-private deals, delegates heard at the HKVCA China Summit 2013. A panel of private equity investment professionals offered words of caution over the privatisation of Chinese businesses from stock exchanges globally at the 12th China Summit organised by the Hong Kong Private Equity and Venture Capital Association. A number of private equity firms have been recently involved...

Read more 2013-06-12 | PEI

Safety First: Investing in China's Food Supply Chain

Driven by rising disposable incomes and lower confidence in food safety, Chinese consumers are willing to pay a premium for quality. PE firms have identified the opportunity, but taking it can be difficult. Fifteen years ago, Charles Shao left his career as a technology investor in the US and returned to China to set up a milk supply business. The mantra to which Huaxia Dairy aspires might as well be "small is beautiful." While others in the industry sought to build scale, this firm has grown...

Read more 2013-06-12 | AVCJ

For Private Equity, Door to Deals Opens in China

Private-equity investors, long shut out from getting controlling stakes in Chinese companies, are beginning to find mainland entrepreneurs increasingly amenable to outside help. These “first-generation entrepreneurs” — people who took advantage of the liberalization of China’s economy starting in the late 1970s — began their operations on a small scale, with modest amounts of capital. Now, their businesses are bigger, and the owners are coping with slowing economic growth, children that don...

Read more 2013-06-09 | WSJ

Change Afoot for Investors in China's Retail Sector

As the economy slows and midtier brands lose favor with consumers who are switching to premium brands and to shopping online, China's retail sector is changing. The result is that private-equity firms that once bet on sky-high consumer growth are now buying into restructuring situations or into companies that cater to more-sophisticated tastes. "Going from a founder focused on growth to a team focused on modern management techniques is a hard curve for Chinese companies," said André Loesekrug...

Read more 2013-05-27 | WSJ

Despite Scandals, PE Still Has Appetite for Chinese Food and Beverage Deals

Investors in China are literally putting their money where their mouths are. Capital invested by financial sponsors in China’s food and beverage sector rose by almost 10% last year, as the industry continues to consolidate and demand for higher quality goods prompts a need for stronger company operations. Although other sub-sectors catering to Chinese consumers, such as personal goods and vehicles, saw a decline in investment between 2012 and 2011, private equity investment in the food and beverage...

Read more 2013-05-08 | WSJ

Asia Private Equity Weekly News, April 29, 2013

HONG KONG, Apr 29 (Reuters) - News and developments in Asia private equity from Reuters News for the week ending April 26. TPG CAPITAL is putting China's UniTrust Finance & Leasing Corp up for sale, seeking $800 million, and has hired Morgan Stanley and UBS to handle the deal, people with knowledge of the matter told Reuters. DISCOVERY METALS' top shareholder and former suitor, Chinese firm Cathay Fortune Corp, said it will not support the Africa-focused copper producer's plan to shore up...

Read more 2013-04-28 | Reuters

Lunar Invests in Chinese Beef Snack Company

Shanghai private equity firm Lunar Capital has bought a majority stake of about 70% in Chinese snack food maker Guizhou Yonghong Food Co., committing up to $50 million to the company. The deal represents one of a handful of Chinese buyouts in a market where private equity investors typically take minority shareholdings in portfolio companies. Proceeds from the round will go toward research and development, and creating new brands that will appeal to niche customer segments, Derek Sulger, managing...

Read more 2013-04-20 | Dow Jones LBO Wire

PE Asia - Slow squeeze

China’s retail sales have doubled in three years, but slowing GDP growth is worrying GPs with retail investments. Michelle Phillips reports. In numbers, China’s retail sector is booming. Revenue and profit have both doubled over the past three years, with sales of over RMB 532 billion (€65 billion; $85 billion) in 2011, according to Thomson Reuters. Yet it’s increasingly difficult to grow the bottom line. A UBS Investment report shows 45 percent of surveyed Chinese retailers reported falling more...

Read more 2012-12-05 | PE Asia

Pricey listings unlikely to return HK listing drought and poor sentiment on the mainland hits private equity industry strategy

The wave of pricey share listings in Hong Kong and on the mainland driven by strong buying momentum is unlikely to be repeated soon, a senior executive of Blackstone said yesterday. Michael Chae, a senior managing director and head of international private equity at the New York-based investment firm, said the listing drought in the city and poor sentiment on the mainland had "weighed down" the "exit dynamic" of the private equity industry in Asia. "A lot of initial public offerings in China and...

Read more 2012-11-15 | South China Morning Post

(Still) Pitching PRI

By Michelle Phillips Responsible investing and Asia would seem to mix like clean water and oil. China and India are ranked among the worst polluters in the world, according to the 2012 Environmental Performance Index, and in many emerging markets, profitable industry trumps quality of life issues at the policy level. Global investors have been seeking a better balance between social responsibility and profit through the UN Principles for Responsible Investment Initiative (PRI). But in Asia, the...

Read more 2012-10-30 | PE Asia

Asian funds trend toward country-specific

By Michelle Phillips As private equity in Asia matures, more country-specific funds are expected to emerge as part of a larger trend of localisation and specialisation. Private equity in Asia has been going through a stage of upheaval since the meltdown of 2008, and firms are under increasing market pressure to demonstrate how they differentiate from one another, according to a panel of industry sources speaking at webinar organised by Merrill Database. Across the region, the easy investments...

Read more 2012-10-03 | PE Asia

Doubts over take private and re-list

Firms that take US-listed Chinese businesses private and hope to re-list them on Asian stock exchanges may be disappointed with returns, according to an industry panel. By Clare Burrows Private equity firms capitalising on the plummeting share prices of US-listed Chinese companies by doing take-private deals could be disappointed with returns, according to an industry panel webcast moderated by Yash Rana, partner at law firm Goodwin Procter. Most Chinese businesses listed on US stock exchanges have...

Read more 2012-09-26 | PE Asia - Panel

For one China fund: it’s not the size that counts, but what you do with it

It’s a phrase not usually associated with private equity, but it actually rings true for one China-based firm, Lunar Capital Management, where the theme is: keep things small. The Shanghai-based Lunar has around $250 million in assets under management and is thinking about raising for a new fund to invest in Chinese companies, next year, said founding partner Derek Sulger. Rather than aim for the stars, Lunar will likely keep the fund at a more modest amount – around $200 million – the same size...

Read more 2012-09-06 | WSJ Blog

Lunar Capital revives King of Walnuts

Shanghai-based private equity fund Lunar Capital Management has acquired a majority stake in Sichuan Zhiqiang Group, the once-prominent walnut producer that later emerged from bankruptcy. Lunar Capital paid US$50 million, including the buyout fee and capital injection, and the firm will be renamed Sichuan Zhiqiang Food. Derek Sulger, a partner at Lunar Capital, said it took 18 months to seal the deal, from initial market research, due diligence to signing the papers. Sulger said he and his...

Read more 2012-03-20 | SCMP

Lunar Capital gets 60% stake in Chinese beverage brand

By Alvina Yuen Lunar Capital Management has acquired a majority interest in Sichuan Zhiqiang Group, an integrated food manufacturer located in western China, in a deal worth up to $50 million. Through the purchase of a 60% stake in the 15-year-old Sichuan-based beverage brand, Lunar Capital has formed a new Chinese-foreign joint venture corporation to hold the company's business and assets, hiring Simon Liu, ex-head of Vitasoy China, as CEO, and adding Derek Sulger, founding partner of Lunar...

Read more 2012-03-20 | AVCJ

Lunar Capital partners Pinco Pallino to expand in Asia

By IPA staff Lunar Capital will partner Pinco Pallino S.p.A. to develop the luxury children’s wear brand, I Pinco Pallino, in China and East Asia. The partnership will involve establishing a joint venture in seven key East Asian countries. Lunar Capital will take a majority stake in the joint venture through an affiliate, and will also second senior management to oversee the Asian operations. The agreement also includes a minority investment from Lunar Capital in the share capital of Pinco...

Read more 2012-01-29 | IPA Asia

China Yeehoo Sells Control to Lunar Capital, Its Affiliates

China Yeehoo Group Ltd., a Guangzhou-based Chinese baby products retailer, has sold a controlling stake to Lunar Capital Management Ltd. and its affilates. Yeehoo’s existing management team will remain a substantial minority shareholder of the company, while Lunar Capital will appoint a majority of the board of directors and second members of its operation team to the company, Yehoo said in a release today. Financial details of the transaction weren’t disclosed. Demand in China for baby and...

Read more 2012-01-10 | Bloomberg

The mystery of the Chinese consumer

Lily Li wears a lanyard with a little plastic card around her neck, even at weekends. It is a badge of honour: it shows that she has a white-collar job. (She is a secretary at Access Asia, a retail-research company in Shanghai.) She uses Apple earphones for the cheap Chinese mobile phone in her pocket, so it looks as if she owns an iPhone. And she drives to work, though it takes four times longer than public transport, just to show off her little car.   After decades of deprivation and conformism...

Read more 2011-07-06 | The Economist