About the Book
"Private equity deal making is often shrouded in secrecy. But one legendary dealmaker is happy to explain how a failing Chinese financial institution was transformed into a profitable one, without a single dollar of government support. During the Great Financial Crisis (GFC) of 2008, banks around the world, including in America, Britain, and Europe, were supported by government cash injections and guarantees. But there was one significant bank, deeply troubled before the GFC, that worked through that time to strength and success, without any government funding or financial guarantees. None. Where was this bank? In China. And, who controlled the bank and guided it during this extraordinary recovery? A US-based private-equity firm. How was all this possible? How was it possible that a US firm took on leadership of a Chinese bank? How did a good-sized national bank, troubled and weak before the GFC, become strong, healthy, and successful, without a single dollar of government support? How did the teamwork with Chinese regulators to implement a series of unprecedented steps? How did the private-equity process proceed, in China, once the bank was so successful, to realize very substantial benefits for its investors, in US dollars? And there's more -- all true, amazingly. A high-profile lawsuit filed in the US, involving a Chinese bank, a Taiwanese-=listed company, and of interest to the Chinese government at high levels. A board composed largely of Chinese businesspeople, with a US-based major shareholder and an American chairman, making rapid change"--
Book Synopsis
An extraordinary tale of an American firm's astounding success in China
In Money Machine: A Trailblazing American Venture in China, Weijian Shan delivers a compelling account of one of the most significant deals in private equity history: the first and only foreign acquisition of control of a Chinese national bank. Money Machine is the fascinating inside story of the transaction as told by the man who led it, from the intrigues of dealmaking to the complex and uncharted process of securing control by a foreign investor of a Chinese nationwide financial institution, a feat that had never before been attempted, nor has it been repeated.
Shan also describes the astonishingly successful turnaround of the institution under the control of the American firm: the clash of cultures, the growth to strength and profitability, and ultimately, the extraordinarily profitable exit from the investment. In the process, he reveals new insights into how finance operates in China's capital system and how private equity firms can add real value to companies. Readers will also find:
- A peek behind the curtain of a process usually shrouded in secrecy: private equity dealmaking and moneymaking
- The complex negotiations between American private equity executives and Chinese regulators to implement a series of unprecedented changes
- The riveting details of the challenges that had to be overcome to return the bank to growth and profitability
An exceptional firsthand account of truly singular deal-making and money-making, Money Machine will be of interest to investment bankers, investors, financial analysts and anyone who appreciates a suspenseful, true-life story.
From the Back Cover
Praise for MONEY MACHINE
"Banking reform, long an oxymoron in a country of government-controlled banking system, was energized by a foreign private equity takeover. This book shares the full story. As the tenacious architect of this historic transaction, Shan provides a breathtaking account of the financialization of modern China."
-- Stephen Roach, Yale professor and former Chairman of Morgan Stanley Asia, author of Accidental Conflict: America, China, and the Clash of False Narratives
"An absolutely amazing tale! It's highly informative and reads like a novel. A must read for anyone doing business in China. And that means almost everyone."
-- Max Baucus, United States Senator (1978-2014) and Chair of the Senate Finance Committee (2007-2014), US Ambassador to China (2014-2017)
"Money Machine is the third of Weijian Shan's riveting memoirs. It is the inside story of how an American private equity firm took over an ailing bank in China and fixed it, before exiting in one of the most lucrative financial transactions ever--and a win for all sides involved. It is also a cautionary tale of just how much tenacity is required when it comes to investing in China--something which is as relevant today as it was over a decade ago."
-- Henny Sender, Managing Director of BlackRock, formerly Chief Correspondent for international finance at the Financial Times
"Money Machine is an instant dealmaker's classic. The author delivers an eyewitness drama of fundamental change. Money Machine ultimately is less about money but about change. Read and learn."
-- Andrew Sheng, Distinguished Fellow, Asia Global Institute, University of Hong Kong, formerly Chairman, Hong Kong Securities and Futures Commission
About the Author
WEIJIAN SHAN is Co-Founder and Executive Chairman of PAG, a leading private equity firm in Asia. Formerly, he was a partner at the private equity firm TPG and co-managing partner of TPG-Asia (formerly known as Newbridge Capital). Prior to his career in private equity, Shan was, at different times, a managing director at JP Morgan and a professor at the Wharton School of the University of Pennsylvania. He holds an MA and a PhD from the University of California, Berkeley, and an MBA from the University of San Francisco. Shan is member of the Board of Trustees of the British Museum and the International Advisory Council of the Hong Kong Stock Exchange. He is also the author of Out of the Gobi: My Story of China and America and Money Games: The Inside Story of How American Dealmakers Saved Korea's Most Iconic Bank.
