We invest in sectors we know well, such as consumer goods and services, retail, environmental protection, clean energy, advanced manufacturing, education and healthcare. We are open to other sectors if a company has a sustainable competitive advantage and the prospects of high growth.
Prax normally acquires minority equity stakes in private Chinese companies, and then helps these companies to eventually go public on stock exchanges in the US, Hong Kong, Taiwan or Mainland China. Buyouts, PIPE deals and cornerstone IPO investments are also possible. We make our investments in straight equity (preferred or ordinary) or convertible bonds. The typical investment size is US$10 million to US$50 million, and the average investment period is 3 to 5 years.