P/E fund

[Martingale]

One of the friend is telling me he started a P/E firm raising capital in US, but the projects they are investing are in China.. of course he found raising capital is not easy. I am just wondering, if this is a valid business model. On the side I heard a story, one of my friend's brother was trying to raise capital for one company, one coal miner threw 50 Mil to them, after two weeks, this mine owner asked my friend's brother :" yo, dude, what is this company do?"

[rowdyroddypiper]

Are you asking if raising money in the US to invest in Chinese projects is a valid strategy?  If so, then the answer is yes, US institutional investors have money to put to work in other markets.  I know people raising money in the US for indian real estate.  It happens all the time.  Most P/E is initially raised blind pool so you have a model but no investments specifically targeted.  Your friend is correct that raising money is difficult, not to mention expensive.

[Martingale]

Yes, i meant raising money from US to invest in China, my feeling is that usually you don't want to put money into something you don't really understand ( not that people don't do this ), on the example i gave, that guy was able to raise capital from China to invest in HK/overseas...  I don't know P/E world that much, so I guess getting capital is harder if you don't have enough channels. (oh by the way, our prof friend is getting married in sept, got any recommendation for his bachelor's party?)

[tripitaka]

There's a book by a guy called tim something-or-other, 'Mr. China,' which is presumably far too old to be relevant, but speaks pretty well to your point about investing in what you don't know. It's a pretty fun read. Anyway, he went from the exploits in the book to GS, iirc.