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At the recent Mergermarket Germany Forum, we sat down with Inna Gehrt from Mandarin Capital Partners.
With a massive increase in Chinese-backed investments in Germany, firms like Mandarin Capital Partners are facing increased competition. Mandarin Capital Partners are a European fund, backed by European investors, who invest in European companies that have, or are developing, a footprint in China. The Chinese-backed funds are targeting the same type of company as MCP. It would seem as if this would elevate competition between MCP and the Chinese-backed funds.
However, Inna argues otherwise. She contends that the value proposition is different and that separates the two funds. While the Chinese can offer more money, their end-goal is an exit strategy that provides a sizeable return on investment. MCP on the other hand is focused on development of the company in the Chinese space. They purchase minority shares and aid the company in its growth in the Chinese market. So while they can’t compete on price, they offer growth opportunities for the companies they invest in.