ABSTRACT
This chapter outlines the context of Chinese family-owned small-to-medium-sized enterprises (SMFEs) and private equity (PE) in Singapore. It explores the issues surrounding empathy and knowledge gaps between family firms and PE to develop a model of barriers to the use of PE in family firms which forms the foundation. The chapter then examines the model through a qualitative study of Chinese SMFEs in Singapore. China's rapid economic growth has led to an equally rapid development of the alternative investment market that has started to invest in the many growth opportunities in the country. The chapter argues that there are similar trends among family businesses in China as well as Australia, with their rapidly ageing populations creating succession difficulties, and concludes that there are significant opportunities for PE investment in both countries, particularly in China, given the rapid development of the PE sector in China.
