Chinese buyouts

Private equity raking over US-China trade war debris for bargains

Disruption caused by the fractious relationship between the world’s two biggest economies spells opportunity for the nimblest investors. Funds are looking to potentially bridge gaps in broken supply chains, take companies private and carve out Chinese units from MNCs.

As the US-China trade war rumbles on casualties are beginning to pile up on either side. Huawei Technologies is reeling from a US blockade of component suppliers while China is probing US blue-chip FedEx for delivery failures.

For private equity funds, though, there's a potential opportunity to begin picking up assets on the cheap.

These funds have plenty of firepower for deals. At the end of June 2018, private capital ready for deployment surpassed $2 trillion, a record amount according to data providers Preqin, and about 18% of that sum, or $360 billion, has been set aside to buy companies in Asia.

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