Seeking Alpha

Peter Fuhrman's  Instablog

Peter Fuhrman
Send Message
Chairman, Founder and Chief Executive Officer at China First Capital ( , a China-based international investment bank and advisory firm for capital markets and M&A transactions. China First Capital was established in 2007 and has its headquarters in Shenzhen, China.... More
My company:
China First Capital
My blog:
China Private Equity, by China First Capital
View Peter Fuhrman's Instablogs on:
  • China Fixed Income Investing, Simplified

    Jun 02 2:58 AM | Link | Comment!
  • China First Capital Interview: Cashing In And Cashing Out — China Law & Practice


    Peter Fuhrman, CEO of China First Capital, explains how the country's private equity market has struggled with profit returns and the importance of diversified exit strategies. He also predicts the rise of new funds to execute high-yield deals


    Date: 05 May 2015


    What is China First Capital?

    China First Capital is an investment bank and advisory firm with a focus on Greater China. Our business is helping larger Chinese companies, along with a select group of Fortune 500 companies, sustain and enlarge market leadership in the country, by raising capital and advising on strategic M&A. Like our clients, we operate in an opportunity-rich environment. Though realistic about the many challenges China faces as its economy and society evolve, we are as a firm fully convinced there is no better market than China to build businesses of enduring value. China still has so much going for it, with so much more growth and positive change ahead. As someone who first came to China in 1981 as a graduate student, my optimism is perhaps understandable. The positive changes this country has undergone during those years have surpassed by orders of magnitude anything I might have imagined possible.

    After a rather long career in the US and Europe, including a stint as CEO of a California venture capital company as well as a venture-backed enterprise software company, I came back to China in 2008 and established China First Capital with a headquarters in Shenzhen, a place I like to think of as the California of China. It has the same mainly immigrant population and, like the Silicon Valley, is home to many leading private sector high-tech companies.

    What is happening in China's private equity (NYSE:PE) market?

    Back in 2008, China's financial markets, the domestic PE industry, were far less developed. It was, we now can see, a honeymoon period. Hundreds of new PE firms were formed, while the big global players like Blackstone, Carlyle, TPG and KKR all built big new operations in China and raised tons of new money to invest there. From a standing start a decade ago, China PE grew into a colossus, the second-largest PE market in the world. But, it also, almost as quickly, became one of the more troubled. The plans to make quick money investing in Chinese companies right ahead of their planned IPO worked brilliantly for a brief time, then fell apart, as first the US, then Hong Kong and finally China's own domestic stock exchanges shut the doors to Chinese companies. Things have since improved. IPOs for Chinese companies are back in all three markets. But PE firms are still sitting on thousands of unexited investments. The inevitable result, PE in China has had a disappointing record in the category that ultimately matters most: returning profits to limited partners (LPs).

    Read complete interview

    May 07 9:13 AM | Link | Comment!
  • Foreign Investors Unfazed By Kaisa's Default –South China Morning Post

    Foreign investors unfazed by Kaisa's default


    No increase in costs as mainland developers Jingrui and Landsea tap bond market

    PUBLISHED : Saturday, 25 April, 2015, 12:38am


    • (click to enlarge)

    Kaisa Group Holdings' debt default has not affected other developers in selling bonds. Photo: Reuters


    China's first default by a developer on offshore debt has not added to costs for fellow borrowers, with moves to relax policy countering any such concerns if two senior note issuances this week are any indication.

    Jingrui Holdings and Landsea Green Properties came to the market this week, hot on the heels of Monday's failure by Kaisa Group Holdings to repay US$51.6 million in interest on two notes, maturing in 2017 and 2018.

    Jingrui priced its three-year US$150 million senior notes at 13.25 per cent, slightly lower than the 13.625 per cent it paid in August last year on the same amount of five-year senior notes.

    "Investors asked more questions about financial details and wanted to know more about our senior management team," Shanghai-based Jingrui said on Friday.

    Landsea issued US$100 million of senior notes due in 2018 at 9.5 per cent.

    Both firms said the price was no higher than last year and terms remained similar, bucking concerns Kaisa's default would see mainland developers' offshore fundraising costs shoot up and demand from foreign debt investors for more protection because they would be regarded as inferior to onshore creditors.

    Analysts said that as the mainland authorities relaxed refinancing channels to support the struggling real estate industry and rev up economic growth, developers could turn to the domestic market if pricing offshore became more expensive.

    Policy easing is fuelling a strong rally in the mainland and Hong Kong stock markets, making it possible for developers to raise funds and cut debt ratios by issuing new shares.

    Meanwhile, ample global liquidity was driving a need for offshore funds to keep mainland developers' high-yield debts in their portfolios, analysts said, despite a tug of war between Kaisa and its offshore bond holders.

    Kaisa's trouble started when the Shenzhen government banned the sale of its projects.

    The market was positively surprised by the return of its founder and chairman Kwok Ying-shing to the company last week.

    His departure in December last year and the company's near-default on interest payments in January shocked investors and froze the offshore bond market for a few weeks.

    "Kaisa is far from the first Chinese real estate developer to run into problems like these," said Peter Fuhrman, the founder of investment advisory firm China First Capital.

    "And yet, again, none of this, the 'politico-existential' risk many real estate development companies face in China, seems to have made much of an imprint on the minds of international investors who lined up to buy the 8 per cent bonds originally," he said in a report on Tuesday.


    May 04 9:47 AM | Link | Comment!
Full index of posts »
Latest Followers


More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.