Jiuding Capital: Private Equity Firm with Chinese Characteristics Harvard Case Solution & Analysis

Founded in 2007, Kunwu Jiuding Capital Co., Ltd (hereinafter referred to as Jiuding) is a Chinese private equity (PE) business that specializes in equity investments in late-stage, pre-IPO companies. Despite its brief history, the business had secured a solid foothold in China's PE industry with its great increase and dazzling investment yields. As of 2011, Jiuding had 260 employees and 6 RMB-denominated funds with 6 million RMB under management.

Jiuding Capital Private Equity Firm with Chinese Characteristics Case Study Solution

While investors revealed strong excitement for the company, Jiuding yet had created much debate in the PE community about its pioneering investment practice - known as the "PE factory" version where investment activities were carried out in a way similar to large scale industrial production. This model has subverted the traditional PE company practice in a variety of ways. Concerns were raised about whether or not the business model of Jiuding was sustainable in the next ten years, given the quickly-shifting landscape of China's PE industry.

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

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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