Taiwan has pulled out all the stops to kick-start a wave of
Taiwan-led outbound M&A by forking out billions of dollars,
but the domestic market remains semi-closed to foreign private
equity (PE) firms.
The National Development Fund Management Committee, part of
Taiwan’s parliament, decided last July to set up a
NT100 billion ($3.25 billion) public-private fund to finance
domestic companies’ acquisitions at home and
abroad. The fund is reported to provide up to 20% of the total
outbound investment value, with NT10 billion allocated to each
But counsel in Taiwan argue that, while the government has
increased state funding for and eased regulatory restrictions
on outbound acquisitions, a lack of exit alternatives and
strict vetting processes imposed on foreign PE funds have been
a major obstacle to inward foreign direct investment (FDI).
"All those examples have given an impression to...