Elite Formations and Cases of Success and Failure

Abstract

Chapter 6 turns to case studies. Contrasts are made between cases of successful replica localization featuring princeling-returnee coalitions (Boyu Capital, CITIC Private Equity Funds Management and New Horizon Capital) and less successful instances of replica localization that are returnee-centric (Mount Kellett Capital, Primavera Capital, Primus Holdings, RRJ Capital and most US private equity firms). Data are presented on the investment teams of princeling-based private equity funds, which reveal that returnees are heavily represented. Fully localized Chinese private equity firms that offer a different model are also presented but the analysis in this chapter casts doubt on the larger importance of such enterprises and notes that these firms operate on a much smaller scale than replica firms.