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Have your say in the AVCJ China Awards

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The China take-private, at least among companies listed in the US, is a relatively new phenomenon in private equity. As it stands, six - soon to be seven - deals have been successfully concluded and a further seven have received board approval, with only a shareholder vote standing between them and privatization.

What started with a handful of deals towards the end of 2010 has since gathered momentum. The driving factors are clear: company founders have become increasingly frustrated at the valuations they are getting on US bourses, making them more open to management buyout proposals put forward by PE firms; meanwhile, the concept has been proven - transactions are getting done, financing is available - which gives impetus to others.

Needless to say, this activity is reflected in the nominations for the AVCJ China Awards, for which voting is now open and runs until May 16. (For more details, and to cast your vote, please follow this link: www.asianfn.com/votechn.asp.)

In 2012, Bain Capital made the final shortlist for Private Equity Deal of the Year for the China Fire & Security take-private. This time around it was a case of which ones to leave out, with four worthy contenders on the long list. The paring process saw two take-privates make it on to a five-strong shortlist. 7 Days Group and Focus Media will fight it out with Alibaba Group, China Auto Rental and HCP Holdings for the top honor.

For the voters, it makes for an interesting proposition: How does a take-private for a US-listed Chinese company stack up against a conventional buyout (HCP), a significant minority investment (China Auto Rental) and an enormous minority investment (Alibaba)?

Take-privates are difficult to finance (offshore debt ultimately secured against onshore assets), the ego and priorities of the chairman must be carefully managed, and there is the pressure of conducting proceedings in public. But the competing deals have much to recommend themselves too: HCP is a full PE buyout, not an arranged marriage with a founder; the China Auto Rental investment was pieced together in the wake of a failed IPO; and Alibaba was the transaction everyone could see coming and of which everyone wanted a piece.

As always, enjoy making your decision.

 

The nominees in full

Fundraising of the Year - Renminbi

  • CICC Jia Tai Private Equity Fund
  • NewMarginYongyi Investment Enterprise
  • Suzhou QimingChuangzhi Venture Capital Investment Fund
  • Tianjin CDH Equity Investment Fund II

Fundraising of the Year - US Dollar

  • Ceyuan Ventures III
  • FountainVest China Growth Fund II
  • Innovation Works Development Fund II
  • Vision Knight Capital Fund

Exit of the Year

  • China Kanghui Holdings
  • China Pacific Insurance
  • Sinorgchem
  • YY

VC Deal of the Year

  • 360Buy
  • Beijing Momo Technology
  • Meilele
  • Tujia
  • Xiaomi

PE Deal of the Year

  • 7 Days Group
  • Alibaba Group
  • China Auto Rental
  • Focus Media
  • HCP Holdings

VC Professional of the Year

  • Ron Cao
  • Kai-fu Lee
  • Lei Jun
  • Richard Liu

PE Professional of the Year

  • Weijian Shan
  • Homer Sun
  • Frank Tang
  • X.D. Yang

Firm of the Year

  • FountainVest Partners
  • Morgan Stanley Private Equity Asia
  • Qiming Venture Partners
  • The Carlyle Group
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