ARC Investment Partners, the investment firm which focuses on Tier II and Tier III regions in China, believes in looking “off the beaten track” for investment opportunities.
China’s eastern and coastal cities are becoming increasingly popular in the financial world due to their mature companies, incomparable accessibility, and numerous investments, making them the obvious place to start. However, the crowded success of the region has resulted in several side effects, including a lack of good deals and opportunities, competition and a significant rise in prices.
Companies such as ARC Investment Partners have pioneered investment management in cities further inland, in Tier II, III and even IV regions. Other companies with strong roots in Eastern China have also begun to shift focus and delve deeper into China in an effort to both expand and reap the benefits of these relatively untouched regions.
ARC’s strategy uses strategically placed individuals responsible for strengthening the company’s brand name as well as sourcing deal flow. Third party finders are also involved in identifying investment opportunities.
Adam Roseman of ARC Investment Partners explained that “the key really is spending time in those regions and not sitting in Beijing, Shanghai and Hong Kong, and waiting for deals to cross your desk.”