Adam Roseman Online

In his weekly newsletter as part of ARC Investment Partners, Founder and Managing Partner Adam Roseman writes about China’s inflation rate. He explains that many have been concerned about the inflation rate there as a result of the recent financial crisis.

The prediction from the price monitoring center under the National Development and Reform Commission is that China’s inflation will ease in the second half of the year.  As the price monitoring center said, “At present, China’s aggregate demand and supply are basically balanced, so prices will not rise to a larger extent than before.”

Adam Roseman explained that ARC China expects the CPI growth rate to peak in June and then to fall by December.  Roseman pointed out in the article that China has taken serious steps to curb inflation. As Roseman explained, “People’s Bank of China (PBOC) has raised banks’ Reserve Requirement Ratio (RRR) six times in 2010 and three times so far in 2011. It is now at nearly 20% for most banks.”

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.

As part of the ARC China monthly newsletter, Adam Roseman, ARC China Founder and Managing Director, explained that China’s economy will surpass America’s in 2016.  He explains that this is actually ten years earlier than was forecast under current exchange rates.

The China GDP has increased by 9.7% just in the first quarter of 2011 from 2010, as reported by the National Bureau of Statistics of China.  This is higher than China’s target that they set for 8% for the full year 2011.

As Adam Roseman: ARC China explained, “Consumer spending, among the three engines of China’s economic growth, has contributed the most to the first quarter’s GDP growth, at 5.9 percentage points out of the 9.7 percent growth. Retail sales surged 16.3 percent year on year in the first quarter.”

In conclusion of his article, Roseman explained that ARC China anticipates equilibrium between economic growth and price growth for the Chinese economy by the end of 2011.  They assume that stabilization will continue in 2012, as reported by Adam Roseman. ARC China concludes by saying that, “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.”

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 ARC Investment Partners was mentioned in an article which appeared in the Economist, the prestigious business news journal headquartered in England. The article, entitled, “Global Private-Equity Firms are Seduced by the China Dream,” The private equity firm ARC Investment Partners is described in the following way: “ARC China is another small firm with experienced managers (that) invests only in companies which collect revenues in an obviously verifiable way, such as a retail company that receives fees from franchisees at a single point, rather than from a string of wholly owned stores.”

Among those “experienced managers” is Adam Roseman, the managing director and founder.

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.

A new surgical imaging device was recently developed and tested in Cedars- Sinai Medical Center, where Adam Roseman is a member of the board of governors. The new scope, called a VITOM, was studied by Neurosurgeon Adam N. Mamelak M.D. , who is practiced in minimally invasive pituitary surgery and is co-director of the Pituitary Center at Cedars-Sinai. During his inspection of the device, Dr. Mamelak was asked by veterinary endocrinologists and surgeons from VCA West Los Angeles Animal Hospital if it could be used in similar operations for animals. Some pituitary tumors are very common in dogs, and are often fatal.

After further examining the scope, Mamelak found that it could indeed be used for animal neurosurgery as well. He agreed to teach the veterinary surgeons how to use it while performing life-saving operations to remove the tumors. The surgery benefits both humans and dogs in an additional way; the removed tumors are sent back to the Cedars-Sinai labs for further examination and testing, with hopes of discovering a drug that can be used as a non-invasive cure.

There is currently only one other organization, located in the Netherlands, working to surgically remove pituitary tumors in canines. Both groups use a transsphenoidal approach, which is basically creating a small hole at the back of the mouth in order to enter the skull at the base of the brain. This has been only partially effective in veterinary surgery until now, because dogs have long snouts which make it harder for the surgeons to see what they are doing. The VITCOM is a wonderful solution to this problem, as it magnifies the operation field by up to 12 times.