Goldman Sachs 2012 Annual Report Download - page 27

25Goldman Sachs 2012 Annual Report
Evan Xu (Hong Kong),
Investment Banking Division
Chito Jeyarajah (Hong Kong),
Investment Banking Division
Q: What made Goldman Sachs particularly
well suited to this endeavor?
XP: Among other things, our strong relationships with exactly
the kind of investors they were looking for. They also trusted
our global team and its ability to work across geographies and
divisions to deliver a solution that would be right for the
company and potential shareholders alike.
Q: From the perspective of the investors,
what made this opportunity important?
JMG: Clearly, the potential growth of the insurance
industry here. China is the world’s most populous country
and insurance penetration is only about two percent of
GDP — very low by Western standards.
BT: Another thing is that just a few top companies, including
China Pacific, control a very big market share. So these
companies offer major investment opportunities, but those
opportunities, given the small number of top players, are
also fairly rare.
Q: So this really was a case of matching needs
and opportunities?
XP: It was, absolutely. A big advantage to working
with Goldman Sachs is our role as intermediary between
companies and investors. We deeply understand the needs
of both, and we have the ability to bring those needs and
interests together. For China Pacific, these were investors
who could provide the capital they needed to grow. For the
investors, this was a great opportunity to strengthen their
portfolios, and for each of them it was one of the largest
investments they had made in China to date.
Q: How is China Pacific putting that capital to work?
JMG: This is one of the most satisfying things about the work
we do — not just presenting ideas for transactions, but ideas
that solve problems and create opportunities. Our ability to
do that doesn’t evolve overnight, or over a couple of days,
but over years. It takes getting to know our clients and their
businesses, and understanding their goals. It means not just
thinking from a financial perspective, but from a business
perspective — what clients need to make their businesses
better, stronger and more valuable.
BT: They will use it to finance expansion — even into deep
pockets in the countryside. This will enhance their ability,
throughout China, to meet people’s basic insurance needs.
Client
Shanghai
Investors
Abu Dhabi
Oslo
Singapore
GS Locations
Beijing
Hong Kong
London
New York
A global solution