PE To Lay Hands On Top Chinese Investment Bank

When a 34.3% stake in China's top investment bank goes for sale, one would expect foreign banks to queue up in large numbers. Instead, in November, when Morgan Stanley announced the list of bidders for China International Capital Corporation (CICC), which were allowed to conduct due diligence, it contained five private equity (PE) funds (Bain Capital, Carlyle Group, General Atlantic, KKR and TPG) and one strategic buyer, Taiwan's Fubon Financial. This week, it was announced that only KKR, Bain Capital and TPG Capital had made the final cut. Why have PE companies emerged as the preferred bidders for CICC?

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