Date: Thu, Mar 31, 2016 at 10:27 AM
Subject: Our investment criteria and interests for the long term
Following my joining the board of a Chinese investment group backed by large institutional, strategic and wealthy individual investors from China – a lot of you have been asking me about the kind of deals they would be interested to invest in in partnership with our US-based P/E firm.
Without further delays, here is the short list as per below
1.Hard asset-based deals that have “intrinsic values” of their own, for example mines, oil field, certain real estate;
2.Businesses with potential synergy with China;
3.Generally shy away from businesses that rely on services for revenue due to a lack of expertise
Technology-based and other businesses that could be transferred to China sometime in the future (regardless whether the US operation is kept intact or not);
1.Alternative energy: especially revenue-generating solar and wind farms; technologies that make solar and wind energy more efficient and cost-effective; battery and other energy storage technologies; energy harvesting;
2.GREEN technology: especially large-scale pollution measurement and reduction; (energy efficient building technology); waste recovery/processing;
3.High-end manufacturing: especially those having to do with industry 4.0/smart manufacturing, robotics; high-tech automobile;
4.New materials: especially nanotechnology, graphene; advanced composite materials;
5.Life sciences, medical and biotechnology: especially late-stage new drugs; mobile health; senior care; non-invasive diagnostics; advanced medical equipment; cancer treatments;
6.Modern agriculture: especially food safety and traceability; IT/internet-integrated farming/transportation/distribution; organic and virus-free fertilizer; diet-friendly farming; “big health”; agriculture e-commerce;
7.Aerospace and defense: especially unmanned ariel vehicles (not subject to US export control); piston- and turboprop- general aircraft manufacturing; piston-, turboprop- and diesel general aircraft engine manufacturing; full avionics systems manufacturing; existing FAA and EASA type certificates; microwave communications devices and systems; military- and security-grade display technologies;
8.Real-estate development: especially development projects with unique value propositions, possess or are close to entitlement approvals, and experienced teams;
9.Financial Technology: especially unique P2P technologies; payment settlement technologies; crowdfunding applications;
10.Oil, Gas and Traditional Energy: enabling technologies for lower exploration/production/distribution costs; new petrochemical technologies;
Asset Type- Based Interests:
1. Assets that have “intrinsic value” and potential for cash flow primarily from the assets themselves (rather than heavily dependent upon services with little or no underlying assets):
2. Oil and gas: either with unique technology or depressed value;
3. Infrastructure: such as road, bridges, ports;
4. Mines: gold/silver, copper, iron, rare earth, with good valuation;
5. Real estate and REITs: located at population centers, with good valuation and steady cash flow. For REITs, good return along with convincing business plan/team;
6. Financial assets: private placements of public company stocks and bonds, IPO placements (including exchange switches)
1.Generally hardware and/or manufacturing based, including those with software as core technology with hardware components
2.Infrastructure-level software/middleware (not application software).
Currently Looking for…
1.Startups in smart hardware, internet of things, virtual reality, big data and data mining;
2.Specialty real-estate: airports, Manhattan real estate development/renovation projects;
3.Aerospace and defense: piston- and turboprop- general aircraft manufacturing, piston-, turboprop- and diesel general aircraft engine manufacturing, full avionics systems manufacturing, existing FAA type certificates, microwave communications devices and systems, military-grade display technologies.
4. Integrated logistics operations with multiple room temperature and/or temperature-controlled warehouse or storage facilities along with corresponding logistics operations. Prefer larger size ($1B or above), steady profitability and cash flow, with owned real estate;
5. Alternative energy control systems technologies, including global power management systems, such as battery management systems for electric vehicles and industrial mobile power management systems (especially for mid-size Li battery) and electric motor control systems (especially in automated electric tools such as electric drills and mowers). Must have core technologies, be relatively mature with income and have existing market;
6. Automobile electronics technologies such as sensors for regular or automated drive vehicles, and associated algorithms; self-driving vehicles technologies including advanced driver assistance systems, information sensing systems (sensors, radars, cameras), processing and control technologies (high-performance chips for vehicles, map processing) and actuation technologies (automatic turns and breaks); vehicle panoramic control systems including 360-degree video recording solutions, panoramic monitoring systems, traffic sign recognition systems and pedestrian collision warning systems. Prefer companies with major automakers as customers and with profits.
Let me know if you have questions or need more information in the event your IR media firm has clients that MEET any of our CRITERIA and interests.
Have a great day
President & CEO
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GLOBALCROSSROADSCAPITAL.COM is a US Vet-owned IR media communications firm is an is not a funder, lender, investor, buyer, seller, free advisor, or broker-dealer. If you have a current need and meet eligibility of any of the interests above you must be a client to proceed. To become one proceed to the CONTACT page at the top of this blogfeed or click on the orange url just above. Also, any questions about P/E firms SOP not already disclosed then save your questions and ask them directly during the course of being a IR client