Our Investment criteria and Interests for 2016 and beyond
Following my joining the board of Elate Partners, Elate Invest – a Chinese investment group backed by large institutional, strategic and wealthy individual investors from China – a lot of you have been asking me about the kind of deals Elate would be interested to invest in in partnership with Blackhawk.
Without further delays, here is the short list as per below
- Western Investment:
- Hard asset-based deals that have “intrinsic values” of their own, for example mines, oil field, certain real estate;
- Businesses with potential synergy with China;
- Generally shy away from businesses that rely on services for revenue due to a lack of expertise
- China Expansion:
- Technology-based and other businesses that could be transferred to China sometime in the future (regardless whether the US operation is kept intact or not);
- Alternative energy: especially revenue-generating solar and wind farms; technologies that make solar and wind energy more efficient and cost-effective; battery and other energy storage technologies; energy harvesting;
- Green technology: especially large-scale pollution measurement and reduction; energy efficient building technology; waste recovery/processing;
- High-end manufacturing: especially those having to do with industry 4.0/smart manufacturing, robotics; high-tech automobile;
- New materials: especially nanotechnology, graphene; advanced composite materials;
- Life sciences, medical and biotechnology: especially late-stage new drugs; mobile health; senior care; non-invasive diagnostics; advanced medical equipment; cancer treatments;
- Modern agriculture: especially food safety and traceability; IT/internet-integrated farming/transportation/distribution; organic and virus-free fertilizer; diet-friendly farming; “big health”; agriculture e-commerce;
- Aerospace and defense: especially unmanned ariel vehicles (not subject to US export control); piston- and turboprop- general aircraft manufacturing; piston-, turboprop- and diesel general aircraft engine manufacturing; full avionics systems manufacturing; existing FAA and EASA type certificates; microwave communications devices and systems; military- and security-grade display technologies;
- Real-estate development: especially development projects with unique value propositions, possess or are close to entitlement approvals, and experienced teams;
- Financial Technology: especially unique P2P technologies; payment settlement technologies; crowdfunding applications;
- Oil, Gas and Traditional Energy: enabling technologies for lower exploration/production/distribution costs; new petrochemical technologies;
Asset Type-Based Interests
- Hard asset-based: assets have “intrinsic value” and potential for cash flow primarily from the assets themselves (rather than heavily dependent upon services with little or no underlying assets):
- Oil and gas: either with unique technology or depressed value;
- Infrastructure: such as road, bridges, ports;
- Mines: gold/silver, copper, iron, rare earth, with good valuation;
- Real estate and REITs: located at population centers, with good valuation and steady cash flow. For REITs, good return along with convincing business plan/team;
- Financial assets: private placements of public company stocks and bonds, IPO placements (including exchange switches)
- Generally hardware and/or manufacturing based, including those with software as core technology with hardware components.
- Infrastructure-level software/middleware (not application software).
Currently Looking for…
- Startups in smart hardware, internet of things, virtual reality, big data and data mining;
- Specialty real-estate: airports, Manhattan real estate development/renovation projects;
- Aerospace and defense: piston- and turboprop- general aircraft manufacturing, piston-, turboprop- and diesel general aircraft engine manufacturing, full avionics systems manufacturing, existing FAA type certificates, microwave communications devices and systems, military-grade display technologies.
Let me know if you have questions or need more information.
Have a great day