Private equity steps in to fill the gap left by China's IPO freeze

The halting of all initial public offerings on mainland stock exchanges has left an opening for alternative financing firms to step in as Chinese companies face tighter liquidity restrictions, Reuters reported. Tim Dattels, managing partner of private equity firm TPG Capital, said the sharp run-up in share prices had previously made it harder for private equity firms to strike deals. “We are dealing in a market now that is illiquid, nowhere to get listed and very little room to raise capital,” he said. “We are going to see a more normalised role for private equity as a provider of capital for growth situation and illiquid situations.”