Investor on a voyage

Principles of sailing can also be applied in investment process, captain says

For Wang Chaoyong, sailing is more than just a sport. It has become an indispensable part of his life, reshaping his outlook on life and business.

The 47-year-old is the owner and co-founder of the first Chinese team to compete in the America's Cup, a 163-year-old international sailing event that takes place every four years and is traditionally regarded as an elite sport filled with rich organizations from wealthy nations.

Over the next two years, China Team will compete for a spot in the 34th America's Cup final, which takes place in September 2013 in San Francisco.

Although it has been a bumpy ride since the team was first formed in 2005, it is gaining ground. In San Diego in November, the team won a circuit regatta, used as a training event for the championship race.

"This represents a great achievement, considering it is just the second time for the team to compete for the cup," says Wang, who is also a founding partner and CEO of China Equity Group Ltd, a private equity and venture capital firm.

"The America's Cup advocates teamwork, entrepreneurship, innovation and social harmony. (They) are what we need here in China," Wang says.

Wang, who looks the part of a successful venture capitalist in his well-tailored suit, spent 400 million yuan ($63 million, 48.5 million euros) to create China Team.

He invested in the sport not only because of its high-tech elegance, but also because he was driven by the great business opportunities brought by the America's Cup.

"Founding China Team is actually a brand-building opportunity. First, America's Cup provides a great platform for business tycoons to familiarize themselves with each other. For instance, I get access to many wealthy families like Prada and Louis Vuitton through this event, which is very helpful to expand business," he says.

Wang also says that the event is a good opportunity for Chinese companies to increase their international profile.

"The image of the America's Cup, which is of a high standard, is of great appeal to them," Wang says.

Chinese restaurant operator South Beauty Co Ltd and China Huiyuan Juice Group Ltd have sponsored the China Team in the past.

"And those companies that have their sights set on the European or US markets can also promote their image through the event, which attracts millions of viewers," he says.

Wang first experienced sailing during a team-building exercise when he worked for the investment bank Morgan Stanley in New York in the late 1980s. Sailing has been his favorite sport ever since.

"The appeal to get close to nature through sailing is irresistible, especially for the expanding group of people who will have more leisure time and wealth with China's fast economic development," he says.

Because of this rapidly growing wealthy class, Wang says he also believes the yachting market has great potential.

"Establishing China Team is of great help for the China Equity Group to invest into this promising market in the future," Wang says.

In the next 10 years, there will be about 100,000 new yachts and the yachting market will be worth between 50 billion yuan and 100 billion yuan, according to a report released by the China Cruise and Yacht Industry Association (CCYIA) in December.

By the end of 2010, there were 1,500 yachts in China, 300 of which were high-end vessels with a value of more than 5 million yuan each, according to the CCYIA report.

Wang has become more well-known - and busy - after taking on the role of team chairman. During an interview with China Daily, set in a modern-style coffee bar at the Grand Hotel Beijing, Wang takes the time to greet many passers-by who recognize him.

"As a qualified ship leader, one should prepare for the unexpected challenges, such as the interruptions of interviews," Wang says.

Born in 1965 to a poor family in Qichun, in Central China's Hubei province, Wang had a tough childhood.

During the "cultural revolution" (1966-76), Wang was adopted by his uncle when he was a year old and lived in the Dabieshan Mountain region for almost 15 years. His foster parents were not in the best physical condition, so Wang had to work in the farm to earn enough to support the family after the age of 5.

"In my childhood, what I was afraid of most was the coming of winter. Because I had to work outside in the farm in winter and could not afford to buy enough clothes to withstand the cold weather, my feet and hands had been infected with chilblains all winters. It hurt very much," says Wang.

"But these sufferings have motivated me to make every effort to change my life."

He began to realize his dreams when he was accepted to Wuhan-based Huazhong University of Science and Technology in 1980.

Four years later, Wang received a bachelor's degree in management and went to Tsinghua University. There he was selected as an exchange student to go to the United States to pursue his MBA at Rutgers University in 1985.

In the early 1990s, he became one of the first Chinese employees for Standard and Poor's, JP Morgan and Morgan Stanley in China. In 1995, Wang rose to chief representative of Morgan Stanley in Beijing.

Confident in the Chinese market, Wang quit his job and founded China Equity Group in 1999. It was originally a business startup investment bank that provided private equity funds to fast-growing Chinese enterprises.

The group has been involved in many successful investment projects, such as Sohu.com, one of China's largest Internet portals; Baidu.com, China's most popular search engine; and Huayi Brothers Media Group, a major domestic film producer.

Wang says China Equity Group now exclusively focuses on areas that comply with the nation's 12th Five-Year Plan (2011-15), such as education, media, biotechnology and environmental technology, sports, medicine and the natural resource industries.

The captain remains confident in his journey into investment.

"The scale of China Equity Group's fund is expected to reach 15 billion yuan in 2012," says Wang, who adds that the group's fund is worth more than 12 billion yuan.

Wang also points out that principles of sailing can also be applied in his investment process.

"To reach the destination successfully, one should make thorough preparations before sailing, including careful analysis of the routes and possible risks. And during the voyage, one should remain prudent and audacious to conquer any unexpected difficulties," he says.

When he worked on Wall Street, Wang had the opportunity to get to know Warren Buffett personally, and since then, he treats Buffett as his idol.

"I want to become China's Buffett and help the domestic companies to grow up," says Wang.

"And just like Buffett's most famous biography The Snowball indicates, the process for one to succeed is like that of gathering snow while climbing a steep slope. The longer you persist, the more snow (wealth) you will gain," he says.

"Buffett became famous until his 70s while now I am just in my 40s. My life voyage has just been launched," Wang says.