Pacific Enterprise Capital’s approach to exits is to experience one or more early liquidity events before final exit from an invested company. An early liquidity event can be a partial share sale or IPO followed in the future by a second liquidity event or complete exit. China’s accelerated business growth is driving liquidity events within Pacific Enterprise Capital’s target sectors at 18 to 24 months post-funding.

Potential M&A acquirers include:

• China Domestic Acquirers: Market activity indicates increased acquisition by domestic enterprises seeking expanding market share and existing operational efficiencies. M&A activity has been driven by both older as well as new companies in preparation to, or shortly following, China IPO listings of the acquiring party. Domestic acquirers often pursue a desired Chinese corporate goal to own and operate a diverse “group” of companies across select industries.
• Foreign Acquirers: Foreign acquirers are also seeking accelerated market entry and existing operating efficiencies. Local competition is often too keen to allow first-time foreign entrants the time to build up their corporate learning curve in China. The most often cited reasons for acquisitions by foreign companies is access to experienced local managers, existing relations with suppliers - distributors and critical licenses – permits. Multinationals are adding China properties to fill-in and complete deployment of their global supply chains and Asia-Pacific marketing centers.

Initial Public Offering:
These listing choices are unranked. The decision when and where to list is subject to several factors and sensitivities regarding the capital markets in general and the company to be listed in particular.

• New York Stock Exchange or Nasdaq
• Hong Kong Exchange
• London Stock Exchange