Established in 2007, JD Capital managed to immediately develop a solid foothold in the Chinese private equity (PE) market by massively investing in pre-IPO prices and taking advantage of the high valuation given by the ChiNext Board. JD Capital has participated in a "factory-style" operational model. The firm has around 60 division locations across China with more than 300 workers, where each local office is responsible for local deal sourcing and for strengthening communications with local governments, banks, and securities firms.
Jiuding Capital Private Equity Firm with Chinese Characteristics (B) Case Study Solution
Chinese private equity marketplace has experienced extreme changes since 2012. The issuance of new IPOs slowed down and was later frozen, the opportunities for exit have significantly narrowed, and also the funds that were raised have quickly fell. The early success of JD Capital had enabled it to obtain a sizable portfolio of bargains, most of which are pre-IPO projects, the slow down and abeyance of IPOs enforced serious exit challenges. Can the past investment strategy and business model of JD Capital continue to work? Is listing on the New OTC Board a lifesaving solution? How should JD Capital transform itself to remain competitive in the business as the capital market in China was getting more mature?
PUBLICATION DATE: August 22, 2015 PRODUCT #: TU0086-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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