Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market specialty industrial, healthcare and financial services companies, has established an office in
Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market specialty industrial, healthcare and financial services companies, has established an office in Shanghai to provide its current and future portfolio companies with additional insights and local support in China.
Dr Steve (XiaoHu) Li, formerly a senior executive with US Arch Chemicals, is the first hire in the new office. Arsenal, which currently has USD800m in committed equity capital, has an office is located in the Kerry Building in the centre of Shanghai’s financial district.
‘Through many China-based subsidiaries and joint ventures in our existing portfolio companies, Arsenal has gained considerable experience in the region in establishing lower cost manufacturing facilities, procuring manufacturing inputs, and increasing access to new markets,’ says managing director Jeffrey Kovach.
‘By leveraging that experience and broadening our resources with a local presence in China, we will further assist our portfolio companies in capitalising on the ongoing globalisation of economies and the increasing importance of China and Asia. Given the trend toward increased competition and the globalisation of markets, we believe there is a heightened need for differentiated strategic insights and capabilities.’
Kovach says of Li: ‘Arsenal undertook an extensive search to identify a professional who understands the business landscape in China, and Steve has a rare combination of technical expertise, local relationships, and excellent general management skills that will help Arsenal strengthen the China capabilities of our portfolio.
‘In addition to bringing an impressive combination of skills of his own, Steve will co-ordinate Arsenal’s existing network in the region and draw upon the extensive experience that Arsenal’s operating partners have in China and Asia.’
Li spent seven years with Arch Chemicals, most recently serving as area director for the Asia-Pacific region and president of Arch China. Previously he was a group manager for Bayer Polyurethanes (formerly Lyondell Singapore) and also has held research and development positions in the US for Bostik and Century International Adhesives & Coatings.
‘I was attracted to Arsenal’s successful track record of disciplined investing, systematic value creation, and their diverse and talented team of professionals,’ Li says. ‘Arsenal’s forward-looking approach to investing that led to establishing a presence in China will provide its portfolio companies with unique access to a range of opportunities in this market.’
