The Pandemic hit the Chinese PE industry but tech-driven investments get an unexpected boost. Rafael Ratzel of Beijing based TH Capital talked about the various PE investment themes post COVID-19 in China.
05 August 2020
Private equity has been a popular option for global investors in their China asset allocation. But how much damage has the COVID-19 pandemic made to the PE industry in China and is it a good time to invest? If so, what sort of investment themes to pursue?
ATC interviewed Rafael Ratzel, Executive Director & Head of International Investments of TH Capital, who argued that although the PE industry was hit by the pandemic, the tech-driven investment themes have actually received an expected boost. He shared his thoughts on the investment opportunity in 5G infrastructure, healthcare, semiconductor, aerospace and autonomous driving.
“If you look at the details, it’s very favourable investment terms with a significant upside that enables us to really create higher returns in a stable and predictable manner over a long period of time. So I think, that’s the really the unique characteristic of Chinese private equity.