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PHILADELPHIA INVESTMENT BANKER INTRODUCES PRIVATE EQUITY IN CHINA

First-Ever Private Equity Conference Deemed A Success

Philadelphia, July 12, 2007 – Philadelphia investment banker Patrick Hurley had a dream. While private equity firms in the U.S. are rushing to go public and chasing after many of the same investment deals, he saw an almost limitless market opportunity for private equity firms in China. Recently, his dream became a reality after almost two years of planning, meeting with government officials and convincing private equity firms of the market opportunity in China.

The first China International Private Equity Forum (CIPEF), recently wrapped up in Tianjin, China. The forum, which took place on June 6-8, attracted more than 4,500 individual participants from 29 Chinese provinces and nearly 20 other countries from North America, Europe and Asia.  A number of companies, investors and professional service firms from the Philadelphia region participated.  And, Mr. Hurley and his firm, MidMarket Capital Advisors, were almost single-handedly responsible for the success of the meeting.

In all approximately 200 private equity funds (representing $30-50 billion in total capital) and professional service firms spent three full days learning about China’s developing investment and legal environments and the country’s policy and strategic goals.  In addition, more than 1,000 small to medium size Chinese business enterprises attended CIPEF to gain information on and access to new sources of capital to fuel the continuing growth and diversification of the China’s regional and national economies.

According to MidMarket’s Managing Director and Founder, Patrick Hurley, “This was the striking of the iron for private equity in China. The 2007 CIPEF exceeded all expectations.  Its success reflects the steadily improving environment for foreign investors in China as well as the need for new sources of capital to help the ongoing development of one of the world’s major economic engines. Because Chinese commercial banks spend only 10% of their resources on private companies, there is an enormous need for private investment.”

The conference was hosted by the city of Tianjin, located in northern China near Beijing, which has been chosen by China’s State Council to be the sight of the country’s third financial center.  The other two centers are Shenzen, near Hong Kong in the south and Shanghai Pudong on the country’s central coast.

In a keynote speech at the Forum, Wu Xaioling, the Vice Governor of China’s central bank (the People’s Bank of China) noted that China must take steps to improve the country’s capital markets and create a multi-tiered market structure that encourages a vibrant private equity component.  She further mentioned that China should concentrate on training qualified fund management personnel, allow financial organizations to invest in private equity funds and ensure that those funds have a viable equity strategy.

Commenting on the impact of CIPEF Robert Castello, Managing Director of the Tarreytown NY-based investment firm Andlinger & Company, described the forum as “a very informative and useful exercise for Andlinger.  Over two days we met with 85 companies, visited four factories and identified at least two investment candidates that fit our investment criteria and style.”

MidMarket’s Hurley had recommendations for those companies and investors that might be interested in mainland China investments, “China represents a great opportunity but it is a complicated market.  Investors will need time to gain experience and a solid understanding of the country’s operating systems and customs.  With the proper commitment, resources and advisors, it can be very rewarding.”

About MidMarket Capital Advisors

MidMarket is an investment banking firm providing personalized advisory services to middle market companies in the areas of financing, mergers & acquisitions and strategic investments.  The experience of the firm’s managing directors and associates ranges across private and public markets, as well as a broad spectrum of industries, corporate finance techniques and investment banking transactions.  That experience coupled with worldwide contacts and execution capabilities provides optimum solutions for clients.

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