Investment Philosophy

The Firm was founded on the belief that a common set of shared principles and values between a portfolio company and a value-added active shareholder would yield the highest risk-adjusted returns in China’s rapidly changing private equity industry. Fundamental to Principle’s investment approach is forging strong partnerships with portfolio company management teams, which has permitted the Firm consistently to take large minority or near-controlling stakes in its portfolio companies.  Not only has Principle held board seats in over 85% of its investments, the Firm has demonstrated an ability to partner closely with business owners and management teams through its unwavering commitment to build value for all stakeholders.  As a measure of its success in building and maintaining enduring trust-based relationships with portfolio company management teams, executives with whom the Firm has partnered have invested in multiple funds managed by Principle.


Principle focuses on businesses that have strong market positions in the areas in which they compete, have globally competitive capabilities or assets (either in terms of technology or processes), compete in high-growth segments of the economy, and have identifiable value creation opportunities that the Firm is well positioned to realize through operating improvements and company transformation. Throughout its history, Principle has maintained a highly disciplined and demanding methodology of investing only in companies where the Firm has developed deep insights about the business and industry through its structured, comprehensive and analytically-driven sourcing and post-acquisition processes; where the Firm has developed a trust-based relationship with company management; where the portfolio company is convinced of the Firm’s ability to add value and the management team is receptive to Principle’s influence; and where the Firm can acquire a large or controlling stake in the business and have a board representation to provide strategic and operational value-add to the company.


We have invested in a variety of transactions where we can provide capital and strategic support to portfolio companies and their owners:State-owned enterprise (SOE) divestitures; Business transformations; Growth capital; Shareholder restructurings.