Established in the year 2007, Kunwu Jiuding Capital Co., Ltd (hereinafter referred to as the Jiuding) is Chinese private equity (PE) forganization that focus in equity investments in last-stage, pre-IPO corporations. Regardless of its terse history, the business had secured a powerful foothold in the PE industry in China with its great development and dazzling venture proceeds. As of the year 2011, Jiuding had 260 staff and 6 RMB-denominated funds with 6 million RMB under administration.
Jiuding Capital Private Equity Firm with Chinese Characteristics Case Study Solution
While financier demonstrated strong excitement for the company, Jiuding nevertheless had created much debate in the PE community about its pioneering investment practice - known as the "PE factory" version where investment actions were carried out in a way similar to large scale industrial production. This model has subverted the standard PE company practice in many manners. Concerns were raised about whether or not Jiuding's business model was sustainable in the next ten years, given the quickly-shifting landscape of China's PE industry.
PUBLICATION DATE: December 31, 2011 PRODUCT #: TU0027-HCB-ENG
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