C Capital’s CEO Ben Cheng on China’s new private equity wave
C Capital CEO Ben Cheng explains how China’s new global-minded entrepreneurs are reshaping private equity, focusing on AI, robotics, and personalized products
Interview: C Capital’s CEO Ben Cheng on China’s new private equity wave
An ambitious wave of Chinese entrepreneurs is changing the definition of China private equity investment, as the market looks for a revival after a few slow years. Cheng sees opportunities across product personalisation, robotics and different geographies.
A new type of Chinese entrepreneur and engineer has evolved over the last thirty years, which has started a new cycle in China private equity From 2021 to 2024 private equity investment activity slowed significantly in China. The post-covid economic slowdown, rising geopolitical tensions and Beijing’s increasing control over business and industries resulted in just five new investments by the ten largest international private equity firms in 2024 according to data by Dealogic. Rising government restrictions, regulatory unpredictability and domestic economic challenges turned the China private equity story from a gold rush of IPO fueled exits to a ghost town for foreign investors.
Over the last thirty years, China private equity trends have cycled through the shift of public assets from SOEs into private ownership via IPOs, then internet commerce and now into global technologies such as AI. A new breed of Chinese entrepreneurs and engineers with international ambitions and capabilities have emerged that redefines what constitutes a China investment and business.
C Capital is actively focused on working with this new group of China entrepreneurs as it has evolved from a Hong Kong based, single family office into a global asset management platform, managing capital form investors around the world. C Capital is a growth stage investor investing about US$10 million per deal, which today represents a Series B round size C Capital is listed in Switzerland (SIX:YTME) and manages funds for more than 30 clients.
Ben Cheng, CEO of C Capital describes his firm’s journey in finding and developing China’s emerging wave of global entrepreneurs. “For the past three to five years, investing in China has been challenging, especially during and after COVID. However, our interactions and relationships with Chinese entrepreneurs have shown that a major evolution has occurred. In the past, most Chinese entrepreneurs and startups were primarily selling a China story- with their business plan confined to China. Today, many of them have developed a comprehensive global mindset. They now possess the skillsets to tackle global expansion and enter world markets. They have grown beyond subcontracting and pure China market plays.”
A fresh generation of Chinese entrepreneurs with a world view and world-class competencies are innovating attractive products. Cheng adds, “They have developed their own intellectual property to meet the taste and needs of foreign markets and consumers. And they are capable of competing, marketing and distributing internationally. They have redefined what used to be called an investment in China.”
“Nothing Phone” is a C Capital investment that demonstrates this new dynamic; it is founded by a Swedish-Chinese entrepreneur and headquartered in London. It was originally designed to serve the India market with affordable smartphones, which comprises 60% to 70% of its total sales. Cheng advocates that, “Our investment criteria aren’t restricted to any region or characteristic. For example, AI companies have emerged to be difficult to define in terms of geographic classification because their sources and uses span across regions. Of course, we hunt for opportunities in Asia as it is our backyard. However, Chinese entrepreneurs are coming to us with global vision and our investor base gives us the resources to leverage our relationships.”
China’s preponderance of state regulations and controls over investment entry and exits remain, but they have compelled changes in investment style from both asset managers and entrepreneurs. Cheng says, “We avoid industries that are politically sensitive. As an investor, we do not assume public policy risks. For example, healthcare in China is treated as a public asset and not suitable for private profits. In China we look for consumer-related, AI and robotic technology investments that exhibit high growth opportunities.”
He explains that “China’s business policies are motivated by the government’s focus on the welfare of its people. For example, restricting kids from playing video games and other unhealthy and burdensome activities, such as overwhelming private tutoring activities. Personally, I don’t see private equity interest returning to private tutoring because the political agenda is to resolve its problems for future generations.”
Cheng understands that the current trade wars and uncertain tariff environment generate investment volatility and the need to seek diversification with international exposure. Casetify is another C-Capital investment in an international consumer oriented, Chinese founded company, based in HK with operations in China, US, and Europe. It is best known for its original product- customized smart phone cases that allow for personal expression.
“About half of our strategy focuses on consumer-related enterprises such as Casetify and Nothing Phone. Casetify is a value added, consumer product with distinct IP (intellectual property) not merely a smartphone case maker. Many Chinese factories can simply stamp out cheap, plastic phone cases. Buyers are willing to pay US$100 for a Casetify phone case that is a personal, customized expression of their taste.”
Casetify is expanding into personalized luggage. Management believes luggage is an underserved consumer product category that competes primarily on price without unique and differentiated forms of personal expression. This new strategy and product is intended to reposition it as a lifestyle brand with unique IP and personalization.
C Capital is active in the robotics sector; Cheng evaluates a valuation gap among global robotics companies. For example, “Figure AI”, a US AI and humanoid robotics startup is valued at about US$40 billion. In comparison, Unitree, its counterpart in China, has a US$2 billion valuation. Cheng says, “Such a valuation spread fails to explain the technological differences between them because both wield the same capabilities. As an investor, your risk-reward is better with the Chinese company.”
Cheng observes fund raising opportunities in Europe at this point in the investment cycle. “Currently, in Europe, family offices or fund-of-funds are deploying relatively small portfolio allocations in Asia- at around 5%, and just 2% to 3% in China. This is sub-optimal because Asia is a younger demographic group than the US and Europe, so growth potential should be greater.” Cheng reasons that, “China, Korea and Japan are leading world consumer markets, so investment allocations should be proportionately larger. Asia represents four of the top ten consumer markets globally.”
Today, European investors are more receptive towards China private equity strategies. Cheng says, “Four, five years ago there was minimum investor interest in China and client meetings were brief. And now they are seeing the China investment cycle improving. IPOs and investment exits are turning positive. First mover advantages in making investments early in this cycle are emerging.”
Furthermore, Cheng believes, “European investors also perceive more geopolitical risk relative to the US, so allocation and diversification from 3% to 10% into Asia is a smart hedge.”
“Meeting new Chinese entrepreneurs, searching for the next unicorn, seeking the unknown entrepreneur who is inventing in his garage or apartment is our goal”, says Cheng. “And determining if they can build a company that can change the world.”
By Peter Guy, FinanceAsia, August 6th, 2025
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Fund manager
C Capital
Hong Kong, Hong Kong SAR ChinaFound in 2017 C Capital is a Swiss listed APAC Private Markets platform active across private and private credit.
Since our inception, we have demonstrated an impressive track record by strategically managing a private equity fund and a private credit fund.
In September 2022, we underwent a significant rebranding and emerged as C Capital, reflecting our evolution and commitment to diversifying investment strategies. We have expanded our portfolio to include private credit and hedge funds, while maintaining a focus on disrupting industries in the consumer, technology, and blockchain sectors worldwide.
At C Capital, we go beyond traditional asset management – we empower and accompany successful entrepreneurs on their journey. With a hands-on approach, we have invested in more than 60 portfolio companies, boasting an impressive achievement of nurturing 20 unicorns among them. Our involvement spans the entire growth trajectory, leading deals from Series A to Series C stages, ensuring sustained success for our partners.
One of the distinctive features of our ecosystem is its wide-reaching impact, with a daily touch point on 15 million consumers. This expansive network enhances our ability to identify and capitalise on emerging opportunities, further solidifying C Capital's position as a forward-thinking and influential force in the global investment landscape.
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