Private Equity Take-Privates: A Fresh Start or a Hot Potato?
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Collected in Robin Shen’s Field Notes · Content type and attribution are shown above
English translation of the Chinese post originally published 2021-07-06. Translated 2026-10-27 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文
Reading guide
Management teams have partnered with private equity funds to take companies such as Fusheng, Nien Made, LCY, and On-Bright private. The first two returned to capital markets, with Fusheng first separating its golf business; LCY and On-Bright still needed time to reorganize after their acquisitions and delistings. Privatization can simplify restructuring before relisting, while some companies seek higher price-to-earnings ratios and valuations in another market. Robin warns that abundant capital may bring more such deals but can also signal a bubble. Many private equity deals made before 2008 became difficult hot potatoes once the industry’s best moment had passed.
Key points
- Fusheng, Nien Made, LCY, and On-Bright illustrate delisting and restructuring.
- Privatize, restructure, then relist—or list elsewhere.
- Excess capital may increase acquisition activity and indicate a bubble.
- The pre-2008 lesson: after the best moment passes, a deal can become a hot potato.
Full text — English translation
These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.
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