HAO Capital: We Have Faith in China

In an interview with China Economic Times, Simon Eckersley, Founder and CEO of HAO Capital, a China focused Private Equity firm, said he remained confident in investment opportunities in China. “Despite a sluggish economic recovery worldwide, we have faith in China. We are investors who partner with entrepreneurs to build their companies into leaders in their markets.”

China Economic Times: Tell me something about HAO Capital.

Simon Eckersley: HAO Capital is a China focused Private Equity firm based in Beijing and Hong Kong, providing growth capital to Chinese companies. Founded in 2005 by three seasoned investment professionals, we currently manage total assets of USD 500mn across two funds.

We are biased for investments in Consumer, Healthcare and Light Industrial, including Clean/Greentech. Our targeting investments vary from RMB 80mn to RMB 300mn with target ownership ranging from 10-25%.

Our LP’s include institutional investors and high net worth individuals.

China Economic Times: What are HAO Capital’s target industries?

Simon Eckersley: We have invested in nearly 20 companies, five of which had already listed overseas. Our portfolio includes Ju Tai Long – a leading furniture retailer, Buchang Pharma, SKR – a medical devices and services platform, LP Amina – an environmental service company for the power industry, etc.

China Economic Times: From your perspective, which industries will become HAO Capital’s investment target in the future?

Simon Eckersley: HAO Capital will be more focused on Consumer, Healthcare, Greentech, energy saving and environmental protection industry in the future.

China Economic Times: Why do you attach great importance to these segmented markets?

Simon Eckersley: We clearly see some economic and social driving forces emerging in China, such as growth of domestic consumption, enhancement of consumers’ brand awareness, the growth in demand for products’ quality and safety, increasing demand from lower tier cities, requirement for sustainable development, aging population and improvement in social welfare and security, etc.

China Economic Times: Does HAO Capital have any specific investment plans in the Chinese market in the near future?

Simon Eckersley: Despite sluggish economy recovery worldwide, we have faith in China.  We are investors who partner with entrepreneurs to build their companies into leaders in their markets. We work with entrepreneurs who have a passion for addressing the challenges of growing their company and taking advantage of growth opportunities. Our focus is on companies that have an interest in creating competitive advantage through superior products, services, technology, management and/or access to unique resources.

Credit Crunch

Wenzhou, the manufacturing center of China, faces shutdowns as private moneylenders demand loans be repaid before Chinese New Year. Simon Eckersley, founder and CEO of HAO Capital, a private equity firm with offices in Beijing and Hong Kong, says, however, it is wrong to see Wenzhou’s problems as being unique.

He cites the problems that Western SMEs currently have in getting loans from European and American banks still trying to restore their balance sheets in the aftermath of the economic crisis.

“I don’t think it is a reflection of a broader problem of the Chinese economy because you also have it in Japan and in the UK,” he says.

He says if businesses cannot demonstrate their competitiveness in any market at present, they are going to find it difficult to get money.

“This is the case in every country and every region. China’s growth is maintaining its momentum, and the credit crisis in one region cannot reflect the whole picture.”

View the whole news on China Daily

The PAX of China – PAX’ing to the WORLD

PARIS, France – 15-17 Nov 2011, PAX Technology Limited, the leading provider of secure POS payment solution provider (HKEx: 0327) in Asia  – was proud to host a number of industry forums and showcase its smart technologies and payment solutions at the CARTES 2011 trade show in Paris, France.

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