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.