any risks of being a sole investor to sponsor a searcher?

by an investor from University of Pennsylvania - The Wharton School

6 years ago

I'm thinking about becoming a search investor in China. As currently there is no search investors in China (as far as I know), I likely have to be the sole investor if I find a good searcher whom I want to invest, unless I or the searcher can bring in international investors. Being the sole investor might have some unique risks (e.g. relationship with the searcher is more critical). Can anybody give me some insights or thoughts? Thanks.

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investor from University of Pennsylvania - The Wharton School

Thanks Fernando and Sachiv for your comments and suggestions.

6 years ago | like reply | 0 likes

searcher from Dartmouth College - Tuck School of Business at Dartmouth

In our experience during our fundraising, local investors usually required that we searchers get foreign investors on our search fund (and foreign investors required local ones). It's not crazy to think that any Chinese searcher should probably look for foreign investors as well, which won't leave you as the sole investor of the search fund. So, a follow-up question would be, do non-Chinese investors have an appetite for investing in China?

6 years ago | like reply | 0 likes

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