Archives for Adam M. Roseman category
Adam Roseman, Founder and Managing Partner of ARC China recently discussed the latest IMF official forecasts which show China’s economy surpassing America’s in real terms in 2016.
China’s GDP has increased above what was expected for the first quarter of 2011, according to the National Bureau of Statistics of China. The GDP has increased by 9.7% in the first quarter of 2011, which is higher than the target that China set for full year 2011.
The largest contributor to this growth has been consumer spending, with 5.9 percentage points out of the 9.7% growth. Urban fixed asset investments have also surged. In addition, the producer price index rose in China by 7.3% in March from the year before, and this is the highest that it has risen in 30 months.
Premier Wen Jiabao has made it known that one of his main goals is to keep the price levels stable for the coming year.
Adam Roseman concludes by explaining that, “ARC China anticipates that China’s economy will reach equilibrium between economic growth and growth in prices by the end of this year with stabilization continuing in 2012. The march of China’s economy to pass that of the US by 2016 should be viewed as the major economic story over the next decade.”
As Ashton Tan explains in an article posted at the ARC China website in March entitled, “Looking Off the Beaten Track,” it’s often a good idea to look off the beaten path for the best investments.
As Derek Sulger, a founding partner at Shanghai-based Lunar Capital explains, “By and large, Eastern China is home to more investments that are larger, and more mature companies, so it’s logical that a disproportionate focus develops on these regions.”
More companies are looking further afield, trying to find investments that others haven’t yet discovered. As the article explains, Adam Roseman, CEO and Founder of ARC China, believes that it’s important to be on site to manage businesses and to find potential deals. As Roseman explains, “The key really is spending time in those regions and not sitting in Beijing, Shanghai, and Hong Kong, and waiting for deals to cross your desk.”
ARC China manages to find these interesting investments by putting individuals in the target areas to build the brand name and to help with deals, and by working with third party finders who look for promising opportunities.
ARC Investment Partners, LLC is a private equity firm that invests primarily in companies in China. Adam Roseman, ARC China Founder and Chief Executive Officer, strongly believes that the country holds a significant amount of potential, which most firms have yet to acknowledge.
ARC is supported both financially and strategically by its investors. Roseman has stated that: “Maintaining strategic partnerships with prominent investment banking firms and other service providers is critical to the long-term success of our portfolio companies. Our ability to execute successful investments is based on our strategic partnership with major investment banking, auditing, recruitment and legal firms, and is supported by our commitment on ongoing investor relations support, as well as substantial portfolio company business development and operational support.”
Last April, the Guild of Big Brothers Big Sisters launched its annual luncheon in support of Big Brothers Big Sisters of Greater Los Angeles and the Inland Empire, with trustee Adam Roseman. The event took place at the Beverly Hills Hotel, and featured highly fashionable clothes, accessories and more from the well-known, chic store Neiman Marcus.
Before the luncheon, a boutique sale presented the wares of numerous retailers, spas, salons and jewelers; all of which were donated and sold for the Big Brothers Big Sisters cause.
ARC China, with CEO Adam Roseman, has announced that Joshua Kurtzig will be joining their team as a Managing Director. As head of ARC China’s Beijing office, Kurtzig will be in charge of business development, execution and portfolio management.
Before joining ARC China, Kurtzig was a director of DAC Management, where he ran the firm’s finance and distressed equity group. He was also the Director of Financial Advisory Services at Stonebridge International, where he was responsible for market entry strategies as well as for providing investment advice.
The Healthy Habits for Kids workshops are part of Cedars-Sinai Medical Center’s efforts to prevent obesity. This ten-week program is offered in schools in the Los Angeles area, and focuses on encouraging children to eat well and exercise regularly by instilling these habits at a young age. The program believes that healthy habits begin through curiosity, and therefore the health educators make sure to include the children, answer questions and pique their interest.
Cedars-Sinai Medical Center, where Adam Roseman is a member of the board, is an organization which works to provide high quality healthcare and state-of-the-art medical research.
Nine years ago, Cedars-Sinai Medical Center’s Maxine Dunitz Neurosurgical Institute discovered a small change which occurs in the molecular structure of the most violent type of brain tumor; the glioblastoma multiforme. When they dug deeper, they detected that a specific protein called laminin- 411 supports the building of the tumor’s new blood vessels, which enable its widespread growth. At the time, there was no technology available that could block this protein.
Recently, a research team from Cedars-Sinai, which is a non-profit organization where Adam Roseman is a board member, has created a drug which is injected into the bloodstream and carried to the tumor. The drug is triggered by the different pH level in the cancerous cells, and blocks the tumor cells’ production of the harmful laminin-411 protein. This new method is regarded as the first of its kind.
Adam Roseman, Founder and Managing Partner at ARC China, explains in his weekly newsletter that China is promoting strategies to develop seven emerging industries. These industries include energy saving and environmental protection, new generation of information technology, biology, high-end equipment manufacturing, new energy, new material, and alternative energy vehicles.
The State Council selected these seven industries recently during an executive meeting. Shortly thereafter, the National Development and Reform Commission (NDRC), China’s top economic planner, announced a plan to invest RMB100 billion in these emerging industries. This money should be put into these seven strategic industries over the next two to three years.
Adam Roseman was a panelist speaking on RMB Funds’ exit strategies at the recent 2010 China RMB Funds Forum in his capacity as ARC China MD and founder. It is ARC China that has launched six public-private joint equity RMB funds so far. The firm has also joined forces with The Westly Group (a venture capital firm) and local governments to set up funds in Tier II and Tier III cities in the hope of supporting and developing the local economies. In this capacity it aims to “conduct due diligence, market analysis, transaction negotiation, corporate governance advisory for portfolio companies, and thorough analyses of exit opportunities to determine the suitability of potential enterprises.” Roseman asserted that: “It is important for PE funds in China to develop a multi-strategy exit approach to their portfolio companies. While historically most PE portfolios in China have focused on a small number of portfolio companies providing the overwhelming return to their LPs through A-share listings, this is not healthy or sustainable over the longer-term.”
Before venturing into new investments, it’s important to take the time to get to know the market. Certainly, companies like ARC China with Adam Roseman understand the Chinese market and have done their research before investing.
Here are a few suggestions. To begin investing seriously in China, it is helpful to establish a local presence and to acquire local knowledge. You can do so by establishing a representative office in China, or by teaming up with a partner that already lives there. Consider incorporating Chinese expertise and local talent into your management plan.
Help top management to nurture close relationships with local counterparts. They need to invest time and money into building strong relationships with business partners in the region.