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Japan Asia Investment Co. Ltd (JAIC). Tokyo-based asset management firm with offices in Beijing, Shanghai, Hong Kong, Taipei, Singapore, Seoul, Bangkok, Jakarta, Ho Chi Minh City, and Palo Alto Investment areas: Growth Capital Venture Capital Buyout Restructuring/Turn-around
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Japan Asia Investment Co. Ltd (JAIC) • Tokyo-based asset management firm with offices in Beijing, Shanghai, Hong Kong, Taipei, Singapore, Seoul, Bangkok, Jakarta, Ho Chi Minh City, and Palo Alto • Investment areas: Growth Capital Venture Capital Buyout Restructuring/Turn-around - Listed on Tokyo Stock Exchange, first section.
China and Japan • 2nd and 3rd largest economies in the world • Strong economic ties • Continuously changing governmental relations • Very different business cultures • Similar development path
Recent Trends between China and Japan • Increasing cross-border M&A activities since 2009 - Chinese companies strive to go global - Small-and-medium Japanese companies seek growth abroad • Widening gap in valuation • Acquisitions from China have become an acceptable option socially and politically
Recent Investment Environment in China - Abundant investment capital (from both offshore and RMB funds) - Severe competition - High valuation - Tightened control on foreign capital in-flow - Diminishing preferential treatment of foreign investors These new developments pose additional challenges to foreign fund managers seeking investment opportunities in China.
Our Focus • Energy-saving, new energy Increasing energy costs forcing China to adopt new, energy-saving technologies. • Environment protection, greentech Increasing environmental concerns and international pressure forcing China to implement and enforce environment-friendly policies. • Advanced manufacturing technologies Increasing domestic and international competitions forcing China to upgrade manufacturing technologies and improving efficiencies as China gradually loses its cost advantages. • Quality and safety Increasing pressure on China manufacturers to improve product quality and safety, which requires further technological improvement.
Investment Criteria Our general investment criteria: • Investment size of $10-20 million per deal • Target IRR of 25% • Lead or joint-lead investor • Extremely attractive entry valuation • Visibility of exit (IPO or trade sale within 3-4 years) • Sector focus: Consumer Goods Environment and Energy Manufacturing • Wholesale and retail • Baby products • Cosmetics • Home appliances • Healthy products • Luxury goods • Food and beverage • Auto parts • Machine tools and parts • Construction equipment • Electronics and optical products • Metal processing • Chemicals • Pharmaceutical and medical instruments • Telecommunication • Logistics and storage • Energy-saving technology and equipment • Environmental protection equipment and products • Alternative and recyclable energy