"Private equity investors should develop a deep understanding of the industry rather than pursuing popular trends," said Ni, adding that they should have self-discipline to carry out due diligence and negotiations, and the ability to design deal structures properly.
"Investors have to be more cautious on valuations and be more disciplined on transaction terms and structures, to provide a sufficient margin of safety," said Ni.
David Liu, former CEO of KKR China, the local arm of the global private equity firm, said sectors like consumer goods, education, healthcare and environmental protection offer great investment potential.
He said as food safety remains a top priority, many investment opportunities will arise in the next five to 10 years as consumers upgrade to a better quality of life.
