Partnership
How we work with founders and owners.
Tao Capital backs a small number of businesses and stays with them. This is what a founder or owner can expect from the first conversation onwards.
What we bring
Capital that does not have to leave. A partner who has built and run operating companies, not only financed them. Access to the firm's network across Hong Kong, Mainland China and international markets. And a decision process that is short, because the people making the decision are the people whose capital it is.
A good fit
- Established or growing businesses with durable economics
- Technology and healthcare, or sports, real estate and consumer retail
- Management that thinks and behaves like an owner
- A need for patient capital: succession, expansion, recapitalisation, or a partner for the long term
- Situations where structure matters more than a headline valuation
Not a fit
- Fund investments or requests to manage third-party capital
- Businesses seeking a quick exit or a financial buyer for a short hold
- Sectors outside the firm's areas of depth
- Unsolicited approaches for public or press comment
The process
Deliberately simple. Timelines depend on the business, but each step has an owner and an answer.
Introduction
A short written description of the business, its ownership and what it is seeking. The firm responds to every serious approach, including when the answer is no.
Conversation
A meeting with the firm's principals. The purpose is to understand the business and the people, not to negotiate. Most of the firm's decisions are taken here.
Diligence
Focused on the questions that matter: the durability of the economics, the quality of the accounts, the strength of the team. Conducted with discretion and, where useful, with the firm's own operating experience.
Structure
Designed around the business. Minority or control, equity or credit, a single close or staged capital. The firm's permanent capital means the structure serves the company rather than a fund mandate.
Ownership
Governance that supports management, capital when it is needed, and a shareholder who does not have to sell. The relationship is intended to last for as long as it creates value.