SAIF believes that there is a strong cultural preference with entrepreneurs in the Asia Pacific region to conduct business with local, long-term partners who understand local business practices and work with them to achieve common goals. With local teams in multiple strategically located offices in the greater China region, we are an active, lead investor in local, fast growing companies.
We generally seek to invest in market leaders that are cash flow positive. We also invest in promising early-stage companies that demonstrate an exceptional competitive advantage and are helping “define” a new space. In a nutshell, we prefer to invest in growth, via established sector leaders catering to fast-growing markets, emerging industry leaders, and cross-border investment opportunities that leverage upon the comparative advantages of different countries. In addition, we opportunistically invest in publicly-listed companies which are undervalued relative to their long-term growth prospects, and special situations that offer unique investment opportunities. Overall, we adhere to a disciplined, value based investment approach.
We generally make individual equity investments of between $10 million and $100 million, in one or more rounds of financing, and generally seek to obtain a significant minority equity ownership position in the range of 15% to 40% of a portfolio company. Normally, we take seats on the board of directors with management rights so as to work closely with portfolio company management teams to significantly enhance value. Our investment professionals have a blend of international experience and local knowledge, which enables us to provide tremendous value to our portfolio companies. Having invested in over 200 companies, mostly in China and overseas companies with strong ties and/or operations in China, SAIF understands the complexity as well as the key to value creation in investing in the region.