Looking for the Next Great Company.docVIP

Looking for the Next Great Company 　　Hugo Shong has been founding general partner of IDG Capital Partners， a Chinese investment firm active in the technology sector， since 1993. He also has been founding general partner of the IDGAccel China Growth Fund since 2005 and the IDG-Accel Capital Fund since 2008. A legendary private equity （PE） investor， Shong has invested in more than 500 Chinese companies， of which over 100 have been listed on the stock market or merged or acquired. 　　But the investment that he is proudest of took him only two hours to decide. 　　“Five years ago， I had a stopover in Los Angeles during which I visited a media company in Burbank called Legendary Pictures，”Shong said on the sidelines of the Eighth Global PE Beijing Forum held on December 10， 2016. “The company had only 30 staff， but the box office receipts of the movies it produced were more than those of China’s two largest state-owned film groups combined. It focused on the production of Hollywood blockbusters， a revenue model I found very interesting. After the visit， I decided to invest 85 million yuan （$12.26 million） in the company.” 　　To his delight， the films produced by Legendary Pictures， such as Inception， Pacific Rim and Jurassic World， became money-spinners around the world. In January 2016， Chinese conglomerate Dalian Wanda Group acquired the company for $3.5 billion in cash， marking China’s largest cross-border cultural acquisition to date. The deal helped Shong get more returns on his investment than he could have imagined. 　　According to data from Zero2IPO， a provider of investment banking and financial advisory services， in the first 11 months of 2016， Chinese PE funds raised more than 1.15 trillion yuan （$166.58 billion） altogether， a huge jump from last year’s 784.9 billion yuan （$113 billion）. 　　China is now the world’s second largest PE market， after the United States. The size of the market expanded fifty-fold from 2006 to 2015. In the next three to five year