Editor’s Note
This article features insights from Tang Kui, Chairman and CEO of FountainVest Partners, on cross-border M&A and international brand strategies, shared at the 2025 World Economic Forum in Davos.
On January 23, 2025, during the World Economic Forum in Davos, Tang Kui, Chairman and CEO of FountainVest Partners, shared insights on new opportunities in cross-border mergers and acquisitions (M&A) and overseas brand operations in a dialogue with Sina Finance. FountainVest is one of the largest private equity investment funds focused on the Chinese market. It previously collaborated with the Anta Group and Tencent Investment to complete the acquisition of Amer Sports (the parent company of Arc’teryx), which became the largest overseas acquisition by a Chinese-funded enterprise. Tang Kui, former China President of Singapore’s sovereign wealth fund Temasek, currently serves as a director at Amer Sports and global tier-one automotive parts supplier BMTS.
Media reports indicate that FountainVest Partners and Unison Capital have jointly acquired the Japanese high-end jewelry brand Tasaki for 100 billion yen (approximately 4.8 billion RMB). It is reported that after the transaction is completed, Tasaki will accelerate the deployment of overseas stores to expand revenue, and the brand’s existing management team will continue to retain their positions and shareholdings. This marks FountainVest’s first investment in the Japanese market and its initial foray into the high-end jewelry industry.
When discussing acquisition opportunities for European companies, Tang Kui pointed out that opportunities mainly stem from the following reasons.
First, large enterprises often divest non-core assets when expanding their businesses, which has become a common operational model, similar to Blackstone Group’s early strategy of building a successful investment model through acquiring and spinning off non-core assets. Many CEOs of multinational corporations consider selling non-core businesses to concentrate resources, representing a significant opportunity in the M&A market.
Second, balance sheet pressure is also an important factor. Against the backdrop of interest rate hikes and economic downturns, corporate profits may decline while facing deleveraging pressure, prompting some companies to sell assets to improve their financial condition.
Third, the exit needs of private equity (PE) fund investments also create opportunities. Investments ultimately need to exit, whether through IPOs or transfers. However, with the European IPO market currently sluggish, asset transfers have become a more realistic choice for PE funds.
Additionally, he mentioned that succession issues in family businesses also provide M&A opportunities. In some family enterprises, successors are unwilling to take over the business, making these companies potential acquisition targets.
Despite numerous opportunities in the M&A market, it does not mean every project is suitable. Mr. Tang Kui noted:
Therefore, he emphasized that the key is to find projects that can genuinely add value through M&A, and he believes there are many investment and M&A opportunities between China and Europe.