The child abuse scandal at RYB Education Inc. (NYSE:RYB) reduced its stock price by nearly 40% last week, just three months after the company’s New York Stock Exchange IPO. The collapse has cost the company’s top ten institutional investors, including China’s largest private equity fund Hillhouse Capital and well-known investment management firm Greenwoods Asset Management, a combined US$52 million on paper. But the losses might have been avoided if investors had taken into account some inherent weaknesses in RYB’s business …
China’s Horizon Robotics, a robotics chip developer founded by a former executive at Baidu Inc’s Institute of Deep Learning, is to raise a US$100 million series A+ round led by Intel Capital, the corporate venture arm of Intel Corporation.
Chinese venture capital firm Hillhouse Capital Group has led a RMB100 million (US$14 million) series B round in Yunzhangfang.com, a corporate finance and tax management software-as-a-service (SaaS) provider.
Arrail Dental, a Chinese private dental service provider with nearly 100 private dental clinics in the country, has raised a US$90 million series D round from Goldman Sachs and Chinese private equity firm Hillhouse Capital Group.
Zhang Lei, founder and CEO at Hillhouse Capital, has donated RMB300 million (US$43 million) to his alma mater Renmin University of China to establish an education fund.
WuXi Biologics (Cayman) Inc., a Chinese contract drug manufacturer whose parent company is controlled by a group of leading private equity firms, has seen its share price soar after completing a HK$3.98 billion (US$510 million) initial public offering on the Kong Exchange Stock Exchange.
Chinese bike sharing company Mobike has received new strategic investment from Singapore’s state investment firm Temasek Holdings and existing investor Chinese investment firm Hillhouse Capital to raise a total of over US$300 million since the start of 2017, a tremendous feat for a start-up with actual operation time of less than one year.
New York-listed Chinese online recruiting portal Zhaopin Ltd. said that it is in advanced discussions with a consortium led by its largest shareholder SEEK International Investments Pty Ltd., together with investment firms Hillhouse Capital Management and FountainVest Partners, about a potential buyout transaction to take the company private.
Beijing-based neighborhood store start-up Huimin has acquired control of O2O (online-to-offline) peer Beequick, as a lack of new funding for these type of start-ups is forcing industry players to survive through mergers and acquisitions.