already deleted thanks!

"buying firms and selling them" .... That's not advisory M&A. That's just normal PE. Furthermore, all PE firms in China purchase companies (buyouts). I also don't understand what it means to buy firms abroad and then find exit opportunities in China. Especially for the US, there are significant restrictions on the industry and many firms don't want to work with China for the obvious IP reason. However, I don't know what this firm really does and how much money it really has, nor am I an expert on the industry.

New $7b aviation fund? Bullshit. HONY has $7b. CITIC has like 4. Names like New Horizon who have extremely strong ties have NOWHERE near that kind of money. Internationally, Silver Lake/THL have around $10, Citi/Ares around $8. I don't know why you think it was $7b. Even 1 billion RMB... I'm skeptical.

You first say it has a state owned background, then that it is state-owned. I don't doubt that some of the employees have worked at SOEs before but I'd bet that it is not state owned.

People do get in to H/W/S from Chinese firms. If you're at a BB doing MO/BO job I don't think you can get in to a top firm straight from that, especially given your ethnicity.

Honestly, the fact that you accept that this fund has $7b and that you're calling it cross border M&A is confusing to me. I don't want to call you an idiot, but.

Sorry, I meant 0.7 bn usd, around 5bn rmb. I corrected that. I think a fund of this size won't be considered as a small fund and they are still raising money, but definitely smaller than citic, etc.

You gave some really good points and I was skeptical about the situation as well, since it's a relatively new find.

But what I mean state-owned is that they have a government background. Lots of projects in the aviation needs government support/approval and that's I believe where their prestige is from.

Most pe firms, to my understanding, in china is only doing growth equity. They rarely touch buyout deals. The fund I mentioned purchased companies abroad, hold in the portfolio, sell to the local government/corporate or try to push for ipo. That's my understanding.

I have seen several people with a similar background of my existing profile or even worse got into Wharton. Some people also say b school actually like non us experience. So doing pe in china will be even better than doing pe in this us. I don't know. Of course it's not one of those well-known names and that's where my concern is from. But given the very special background and industry, will it be a black horse?

And just a side note, personally I think hony and new horizons are not doing as well as citic. I have friends working in those firms and look like they are all looking around for new opportunities.

Again, that's around 4.5 bn RMB, not 50 billion.

Foreign firms are limited in many cases to minority interests, but most of the domestic PE shops I know of do buyouts. If their government relationships aren't airtight, it's a shitty business because the IPO market is basically closed (800+ waiting for CSRC) and everyone knows PE firms have many billions of $ invested and they can't exit unless they sell at significant discounts. So, why would an SOE buy a company at full enterprise value when they know full well the fund has to exit within a x year period (this is more relevant for the earlier funds who are approaching their expirations)? They're not dumb. For a "new" fund though, I suppose the IPO market may open up in a couple of years.

If your time horizon is going to b-school in a couple of years, I actually doubt the fund (depending on when it started) can successfully exit any meaningful deals to put on a resume.

Sure they like non-US experience, but if you don't actually know what your job entails and can't clearly articulate your thoughts, your background becomes far less relevant.

MANY PEOPLE in China IB/HF/PE are trying to leave. If you don't understand why, maybe you should do some more research.

whynot123

can you expound a little on why people are trying to leave Chinese IB/HF/PE?

that's where I'm hoping to wind up so I definitely want to hear some of the cons. Thanks a bunch

HF: This is a nice summary. http://www.bloomberg.com/news/2013-03-05/traders-flee-asia-hedge-funds-…

PE: See above. The exits are few and far between.

IB: Traditionally $ has come from IPOs. Most large SOEs are listed, and the current IPO market sucks. Some firms are doing okay but generally pay is slightly (or a lot) lower as well. For local Chinese, there is somewhat of a prestige factor. Many would like to go to PE/HF.

I got the job t brought a recruiter. I think they like my us background and brand name. But I agree, it's very very hard to transition from mo to fo roles.

So my question is, is fo job in china more well regarded than mo in ny to top b schools and employers?

Will the lack of closing an actual deal matter that much vs. the skills I obtain? My impression is the foreign funds, including the mega ones can hardly close any deals nowadays and so will that affect all pre-MBA associate with a two year contract?

monkeylovestojump: There are many mainlanders with strong US backgrounds and brand names on their resumes. I agree with whynot123: get a better understanding of the industry and role. It wouldn't hurt to interview with the firm and get a better understanding of what they want from you - like your personal connections.

PE market in China: lots of cash, too few good projects, exit problems

I think I have described clearly enough what I will be doing, like most other pe juniors - modeling, due diligence, industry research, etc, but probably some more exposure to the decision making and deal sourcing due to the small team. Also they said I needed to travel abroad a lot for the companies they are buying. But it's hard to verify..guess I will only find out when I am there.

Of course I don't have the strongest background, and that's why I couldn't get into the mega funds. But I come from the ny headquarter of a prestigious firm and I don't see any other in the team has a typical blue chip background that people in this forum consider. So I guess I still consider myself a person with a good résumé and smart enough that just went to the wrong route (non ib) after graduation.

Getting an offer has a lot with luck and chemistry. But I think for the junior position, I am over qualified in some sense and also under qualified for the lack of traditional banking experience. I guess they see my potential and are willing to take some risks. And the position pays less than most ib/mega pe funds. I guess many "qualified" candidates won't want it because of this reason.

Interestingly, I haven't heard many suggestion to my original question yet..waiting for more

up

Sorry, I can't say which one is better, either I can only share my knowledge of China PE with you.

As someone mentioned above, the PE environment in China now is wild: too many PE firms compared to few good projects. Everyone is expecting a clean in this industry and see who may survive.

There are also many PE firms like the one you described: State-owned background, by "background" basically means the firm is funded by the local government (city government or province government), hiring people from wall street. Some of them are doing overseas buyout, say OTCBB, some are doing VC business.

Another important factor may affect PE is IPO process of Shanghai or Shenzhen Exchange, which is very slow. Because it seems that the authorities are kind of satisfied with the index level right now, 2000 to 2500. So I don't expect another IPO boom in the future, which will drag down the index, so this is a bad news for all PE firms.

The advantage of this kind of firm is you can build a really good relationship with your boss who has great network in this field. This will help your recommendation letter for B-School application.

What if I get a bb IBD offer in ny, will that be rated higher than the china pe offer, given I still want to go to b school in 2014?