· Fund Transition ·

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Prax Capital was founded in 2003 as a private equity fund focusing on the primary market in China. It began by investing in growth investment opportunities and later focused on control (buyout) investments. Representative cases include: Suntech, Little Sheep, Chlitina, Suchuang Gas, Initial Fashion, Yongda Auto, Tsui Wah, Yuga Group, etc.

Prax Capital has now transformed into a traditional search fund initiated by Victor Wu. It is an investment vehicle for searching, acquiring, and operating a small-to-medium sized enterprise. We believe we are the perfect successor for target businesses and can continue the legacies of business founders.

· Search Fund Model ·

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The purpose of a search fund is to look for a small-to-medium sized enterprise and acquire it. After the acquisition, the searcher will operate the company as its CEO. The search fund model is also known as Entrepreneurship Through Acquisitions. The concept was originated by Harold Irving Grousbeck in 1984, a professor at Stanford University’s Graduate School of Business.

As an economy matures, companies inevitably have succession issues. These great businesses need candidates to take over and continue their legacies. The search fund enables a searcher to become an entrepreneur by acquiring a business instead of starting from scratch. Investors back the searcher for the search and once an acquisition is done, the searcher will act as the CEO of the company and is responsible for running the business until exit.

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For more information on the search fund model, please refer to the following links:

Stanford Graduate Business School - Center for Entrepreneurial Studies

IESE Business School - International Search Fund Center

· Investment Criteria ·

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