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There is a big trend in Chinese PE throwing money into the US market with expected returns that much lower than what the western market would expect, and theref
by mbesto 11y ago
There is a big trend in Chinese PE throwing money into the US market with expected returns that much lower than what the western market would expect, and therefore western PE is continually being outbid by the Chinese. So, even if Chinese get lower returns for their capital in the US than typical PE's, those returns are still higher what they would get domestically in China.
- 7Figures2Commas 11y agoYes, and the Chinese have logical reasons for accepting lower returns because they're exposed to risk in China that domestic PE firms aren't exposed to. This said, it should be noted that when the music stops, these firms aren't guaranteed a return at all. Many of them are going to lose. It's just a question of how much.