PIPE, also known as Private Investment in Public Equity, is an alternative investment in listed companies, by way of, through private placement, subscription from listed companies or purchase from their major shareholders common shares or preferred shares with certain price discount and/or other ancillary rights. PIPE investment, in a broader sense, involves a variety of securities such as equities, convertible bonds, warrants, which are issued by listed companies, their subsidiaries or controlling shareholders. CEL‘s PIPE aims to invest, through private placement, block trading, cornerstone/anchor investment, in listed or soon-to-be listed companies with a Chinese background or China-angel, as well as their associated companies or major shareholders. CEL‘s PIPE pursues absolute returns and invests in quality companies that have strong fundamentals and high growth potential, or undergoing structural transformation leading to special investment opportunities.
Strategically important and fast growing sectors: Attention is paid to sectors that are encouraged by government policy and have great growth prospects, such as healthcare, TMT, consumer goods, new energy & environmental protection, and advanced manufacturing, etc.
Established high-growth companies: Established companies tend to have defined business models that enhance the probability of successful investment, whereas high growth ensures superior investment returns.
Event-driven special opportunities: Opportunities arising from critical development of companies or industries may bring superior returns, including but not limited to: sector consolidation, merger and acquisition, company restructuring, asset injection, as well as privatization & relisting, etc.
Flexible investment structure: Taking advantages of both primary and secondary markets, we invest across capital structure such as equities, convertible bonds, as well as other structured instruments, giving rise to an investment portfolio with relatively balanced tenure and equity / debt risk, thus achieving superior returns with controllable downside risk and liquidity risk.
Active pre- and post-investment management: Carefully conduct pre-investment screening and due diligence, and closely perform post-investment monitoring, as well as, subject to regulatory compliance, providing advice and assistance to investee companies in areas of business strategy, financial management, and corporate governance, in order to achieve a win-win situation.
Cross-border investing: Investment teams based in Hong Kong and Shanghai work closely, with an aim to constructing a RMB/US$ balanced investment portfolio by utilizing various cross-border conduits and by leveraging the teams‘ rich experience of investing in offshore and onshore capital markets.
Secondary Market Funds
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