According to the Xinhua News Agency, Capital Connection and Deal Source (“speed dating”) will be the format used to connect potential investors and small- to medium-sized enterprises in China during the first China International Private Equity Forum (CIPEF) in June.
The CIPEF is jointly organized by the Tianjin Municipal People’s Government, the All China Federation of Industry & Commerce (ACFIC), and the Association for Corporate Growth (ACG). It will be held in June 2007 in the Tianjin Binhai New Area International Convention Center. The event will provide unprecedented financing opportunities for Chinese growth companies from a vast number of participating foreign investment funds.
Mr. Wei Wang, the deputy secretary-general of the CIPEF organizing committee, stated that ACG’s Capital Connection is an internationally recognized model used in such a forum. Its purpose is to connect potential investors and companies seeking capital. It allows Chinese companies to interact with as many investment funds and intermediaries as possible within a short time frame.
Deal Source (“speed dating”), adapted from ACG, is a mature financing interaction model to connect investors and company management. After reviewing a company’s business plan and expressing interest, the prospective investor will register and set up a 45 minute meeting with the company’s management. Deal Source is efficient and effective for both investors and companies seeking capital.
Private equity investment funds represent private/non-public investments. The funds typically invest in privately-held companies, in which they see talented management and growth opportunities. During a company’s growth stage, the investor shares in the company’s risks and returns. Private equity funds generally realize their return by later selling shares via a public offering or company merger.
Attending the conference will be more than 70 private equity funds from the U.S., Europe and Japan with total capital ranging from $30 billion to $50 billion. Domestic investment companies, commercial banks and intermediaries will also participate in the forum. The forum will open financing channels to all rapidly growing small-to medium-sized companies.