Buyout Firms Lack Exit Ramp In China

Due to the lack of IPOs in China, private-equity firms have few options "cashing out" their Chinese investments. The other obvious option, selling to another firm, is difficult due to the few number of buyers. Bain & Company's head of Chinese private equity, Vinit Bhatia, discusses how "China is still a relatively fragmented economy with a disproportionately small number of large businesses relative to the size of its economy." This makes it difficult for large-scale sales of Chinese assets by a private-equity firm to take place.