Sequoia leads charge in China buyouts

New York

IN this month's US$19 billion buyout frenzy of Chinese companies listed abroad, one man may hold the key to figuring what is next. Neil Shen, the billionaire co-founder of Sequoia Capital China, is leading the charge among venture capitalists and private equity (PE) firms to scoop up companies listed in the US and ultimately take them public in the mainland, where a surging stock market means that shares are being afforded higher multiples. Mr Shen and Sequoia have targeted at least five companies for takeovers this month.

Alternative asset managers are focusing on companies that they already hold and on which they also have board positions as they race to complete their due diligence, line up management and arrange buyout groups. Companies from online retailer Jumei International Holding Ltd, in which Sequoia owns a more than 15 per cent stake, to online bookmaker 500.com may be the next takeover targets, according to China International Capital Corp.