Money Machine: A Trailblazing American Venture in China - Hardcover

by Weijian Shan (Author)

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.

Front Jacket

Money Machine is the riveting story of how an American investment buyout firm accomplished the impossible, buying control of an ailing national bank in China and transforming it into one of the healthiest and most profitable financial institutions in the country.

This astonishing true story is the third book by legendary investor and bestselling author Weijian Shan. As the chief architect of the deal, Shan is the ultimate insider, leading the reader on a daring adventure into the secret world of private equity moneymaking, full of victories and frustrations, obstacles and inspiration, as he and his hardy team of investors work to solve seemingly unsolvable problems through persistence and creativity.

Shan's firm was in uncharted territory. No foreign company had ever acquired control of a national bank in China, where the banking industry was tightly regulated. With the risk of failure lurking around every corner, the struggle to win control of the bank was fought from Hong Kong boardrooms to Texas courtrooms, and all the way to the halls of power in Beijing.

But winning control was just the first part of the story, and Money Machine traces the deal from inception all the way to its triumphant conclusion: The creation of one of China's most innovative banks and the unlocking of billions in value for Shan's investors. The deal was a victory not just for Shan and his partners but for the bank itself; its employees and shareholders; and China's reform-minded regulators, determined to bring the country's banking system into the 21st century.

This is a story of the tremendous changes sweeping through China during a remarkable period of breakneck growth. It is also a story of private equity at its best, creating value by being transformational and improving market efficiency as it does so. This is a book for anyone who wants to learn about how buyout works across borders, how to survive and thrive in a foreign culture, and, what it takes to be successful.

Back Jacket

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

Author Biography

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.