Article at a glance:
Competition to invest in new opportunities in China is making capital abundant and thus reducing the influence of individual foreign investors. For this reason, as well as a general lack of experience with China's business culture, private equity managers may have difficulty pulling off successful deals in that country for some time, though the economic boom there presents them with opportunities to invest in non-Chinese companies that will benefit from it.
The take-away
Private equity firms would do better to offer their capital and management expertise to midsize companies looking to shift their operations and sourcing to China than to invest directly in companies there.