ARC Investment Partners focuses its investing attention on China’s Tier II and Tier III cities. As explained on the ARC China website, China has 91 cities with a population over 5 million. This includes eight cities with populations of over 10 million. These often untapped resources hold the key to attractive prospects for investors and for exceptional future growth potential. ARC Investment Partners has either already invested in, or is pending investments in, portfolio companies that are located throughout these regions. Such investment locations include: Chengdu, Sichuan Province; Shi Shi, Jinjiang, Xiamen, Fujian Province; Dalian, Shenyang, Liaoning Province; Harbin, Heilongjiang Province; Shijiazhuang, Hebei Province; Jiangyin, Danyang, Jiangsu Province and Xi’an, Shaanxi Province.
The arm of ARC Investment Partners that invests in these regions is the ARC Westly China Fund. They focus on domestic consumption-oriented high-growth projects. They have a mix of international professionals and of local Chinese professionals working together. Their focus is on consumption- oriented, high-growth profitable companies
As Adam Roseman, Founder and Managing Partner of ARC Investment Partners explained in his online newsletter, China’s household consumption continues to rise and to become an ever-increasingly important part of China’s overall economy. China is moving towards being a consumption-oriented economy, due in part to China’s economic reforms from the last three decades. China’s consumer class, as documented by China Economic Quarterly, is currently at about 300 million. It generates approximately $800 billion, which amounts to 45% of total private spending.