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History
China has been enormously successful attracting foreign direct investment to fund its spectacular growth during the past 20 years. In recent years it has recognized, however, that it must strengthen the role of the domestic capital markets in financing China¡¯s entrepreneurs and technology innovators. China needs to create more financing options for its vast pool of entrepreneurs and it also needs to address the expatriation of the value they create - the investment advantages currently enjoyed by foreign venture capital funds and overseas equity markets. To address these issues, China has re-structured its public equity markets and they will become a much more important listing venue for private sector companies in the future. China¡¯s private equity market is following suit and new policies are providing incentives for domestic private equity funds. Future changes will include more favorable tax policies, exemption from government approval requirements applicable to other foreign funded investors, and other limitations on foreign investment.
SIG¡¯s partners recognized the changing investment landscape and founded SIG Capital in 2001 to take advantage of China¡¯s growth economy and the government¡¯s emphasis towards domestic venture capital funds.
Approach
SIG takes a proactive approach to investing, preferring to work alongside management to identify the market opportunities. SIG is typically the lead investor in the syndicates we arrange. On any given deal, a dedicated team of professionals will analyze the market and perform intensive due diligence on the company before an investment report is brought to the investment committee. After an investment is made, the same team of dedicated professionals and a SIG partner will take an active role in helping the company reach the goals and objectives outlined in its business plan. Investors and investee companies alike trust that SIG will plan and dedicate resources to the entire life of an investment, from the initial executive summary to the investment exit.
Investment Strategy
SIG focuses on investing in expansion, growth capital, as well as buyout stage opportunities where we can leverage our experience and ability to establish value adding relationships with Chinese companies to obtain attractive investment valuations.
| SIG seeks companies |
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High growth industries with a domestic market focus
Industries that cater to the growing demand for goods and services driven by the ongoing dramatic shift in China¡¯s populations from the countryside to its urban areas, such as consumer products and services, media, logistics, healthcare, education and leisure and entertainment.
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| SIG looks for the following characteristics in successful companies: |
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Fast growing with visible traction in their business model
Clearly defined strategy
Mature management with an understanding of value creation
Protected by significant barriers to entry and high levels of IP
Recognized brand names |
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| SIG will identify and pursue opportunities in SOE restructurings and MBOs with |
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Clearly defined exits
Improvements of technologies, management and financial returns
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