Taiwan Focus: Gateway to investments in greater China

In the past ten years, Taiwan enterprises or enterprises run by Taiwanese have been seen as great jump boards to the China market and have attracted abundant investments by foreign private equity and venture capital. While some PE firms searched for companies with strong cash flow, some saw opportunity in the industries that may have better growth potential in China, such as the consumer or financial industries. Venture capitals are attracted by the high concentration of start-ups with high-calibre talent in the high-tech industry in Taiwan. As a result, in the cable-TV sector, all of the three largest Multiple Service Operators (MSOs) in Taiwan were once controlled by foreign PE firms. This was until the Carlyle Group sold its interests in one of the MSOs to a local enterprise in 2011. In the financial sector, PE firms acquired majority or minority stakes in Taiwan banks, including TPG, Long-reach Group, Carlyle Group, GE Capital and SAC Private Capital Group.

Tsar & Tsai Law Firm is honoured to be able to participate in this booming area of private equity and venture capital investment in Taiwan. The firm represented clients to acquire controlling interest over local targets, including the largest MSO in the cable-TV sector in Taiwan, En-Tie Bank and to invest as a strategic partner with minority stakes, like Taishin Financial Holding Company. The Firm also advises clients in disposition of stakes by ways of stock market exit or private placement, where the clients wish to realise their gain.