1. Lam Ching Johnny2008060135

2. Outline  What is Private Equity? - stages of investment - types of equity transaction - investment process  Private Equity in Asia - China - Hong Kong  The Blackstone Group L.P.

3. What is Private Equity?  Long term equity funding  Young and fast growing companies  Enhances liquidity  No burden of collateral  High risk

4. Stages of investment StagesSource of Fund Seedowner’s capital Developmentowner’s capital Expansionstartup venture capital(high risk) Mezzaninedevelopment capital Buyoutsbuyouts

5. Types of equity transaction TypesSize startup venture capital US$1m - US$5m development capital US$5m – US$30m buyoutsUS$20m to over US$1 billion

6. Investment process  Initial Evaluation and Negotiation  Due Diligence  Final Negotiation and Completion  Monitoring  Exit

7. Private Equity in Asia  two main markets – China and India  changing economic structure  industry deregulation  high demand for funds

8. Private Equity in China  poorly developed, mainly foreign private equity companies  excessive regulation  poor enforcement of Intellectual Property Rights  social issues

9. Private Equity in Hong Kong  gateway to China  benefit from deregulation in China  excellent infrastructure and skilled finance manpower

10. The Blackstone Group L.P.  NYSE:BX  1985, financial advisory company  June 27, 2007 completed IPO (totaling $4.13 billion)

11. The Blackstone Group L.P. - latest focus  Cleantech  Infrastructure  Zhonghua Development Fund