At an SIV conference run by Basis Point Consulting on Tuesday, a panel of global investment experts said that co-investment provides a “shortcut” for Chinese investors aiming for a more global strategy.
“Co-investment is something that investors that I know would look very importantly at,” CEO VIG Sydney/Beijing Michael Guo said.
“Getting new insights from managing a certain type of company here in Australia is, in itself, more valuable and more important to the investors than just getting returns.
“Maybe they are aiming for a globalisation strategy and investing in a similar company in Australia is a very good shortcut to getting access to that industry and access to that experience so that’s something that I personally get asked a lot from investors I meet over in China.”
The Table Club founder James Burkitt said that Chinese HNW investors would also be looking at the funds management industry when it came to SIV opportunities.
He said that HNW investors are in a wealth preservation frame of mind and will invest large sums of money into areas of core competencies, and outsource other expertise.
“What I’ve found is that the clever investors will outsource where they feel they don’t have the expertise,” Mr Burkitt said.
“So if you think you’re an expert in investing in Australian companies than do it yourself, but if you’re not, use someone who has the expertise.”
Mr Guo added that the key to networking with HNW investors in China is through building personal relationships and working with referrals.
“I can’t stress enough the importance of networking, especially with those with high net wealth from China,” Mr Guo said.
“In terms of Chinese culture, people only socialise and only associate with people they like and trust.
“If you can’t break into that circle of trust, you cannot do anything at all. But if you can become friends with their friends or relatives then the door is open, and you’ll be amazed how many referrals you’ll be introduced to.”
