Invest

Gauging Private Markets Is Essential to GCC Institutional Investor Success

13 June, 2019
  • Sean Daykin

    Principal, Mercer Financial Services Middle East

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"The key for investors is to identify investment talent who can generate strong investment sustainably over time."

Private equity (PE) is becoming increasingly important in the Gulf Co-operation Council (GCC) in light of recent intensified economic diversification and development efforts. It is emerging as a relatively new asset class in the region, with interest in "growth capital" rather than the more traditional "buy out" PE has seen in the developed markets of the UAE and Western Europe, in which fund managers take a majority stake. Indeed, venture capital (VC) has seen a surge of fundraising following the success of the region's VC unicorns, such as Careem, and the purchase of Souq.com by Amazon.

Private equity can play an important role in driving economic growth. Factors, like the region's increasing wealth, recent important economic reforms and regional governments' strong initiatives to strengthen local entrepreneurship and promote small to medium-sized enterprises, make it highly attractive for PE investments.

Governments in the region are attempting to foster further growth in VC by creating incubators and regional hubs with reduced regulations to encourage entrepreneurs to set up in the region. These efforts will ultimately drive sustainable economic growth, greater prosperity, and more highly skilled jobs.

However, following the highly publicized case of Abraaj Group,1 the industry is calling for more robust corporate governance in the region. Local PE managers are facing far greater scrutiny as investors are starting to pay more attention to how their funds are handled.

Regional investors are asking for a better understanding in gauging the performance of private markets. Buyers and investors want to base their decisions to enter the PE market on proven and tested information, considering factors like past performance and doing their due diligence on investment and operations.

While measuring the absolute and relative performance of private markets is critical, it is significantly nuanced. As "value creation" is an important aspect in the private equity story, measurement should be not only accurate but also meaningful.

As with all investments, evaluating past performance is always a factor when deciding whether or not to include private equity within the overall asset allocation of a portfolio. However, PE investors must look deeper to determine a Fund's true performance, through rigorous due diligence. A combination of metrics and qualitative measures are important for providing a holistic understanding of the Fund's track record and its future performance potential.

In terms of quantitative metrics, the three most commonly used ones are Internal Rate of Return (IRR), Total Value to Paid (TVPI) ratio and Distributed to Paid-In (DPI) ratio.

IRR is the most widely cited metric for measuring the performance of a private market investment. This is a time-based measurement which takes into account the investment made and acquired over a period of time. The longer an investment takes to mature (or sell at a given price), the more a given annualized IRR will fall.

The second measure, TVPI, considers the total of how much value is received from investments (through dividends and a sale at the end), compared to the initial investment made. The final measure is the DPI ratio, which measures how much of the initial capital is returned (through dividends or other payments) compared to how much was invested initially. DPI is a barometer of realized value, not total value.

All three of these metrics play an important role in helping investors evaluate a private equity fund's historical performance. While there is no single answer for comprehensively and accurately assessing the performance of a private equity fund, these metrics when employed together can help get a better understanding of it.


Gauging past performance of a fund doesn't tell you much about the performance of the next private equity fund. These commitments have a long life, and it is, therefore, necessary to consider other investment related factors. They could include the stability of the investment team, looking at how the investment team sources deals or how they create value at their portfolio companies.

Following the Abraaj case, assessing managers and back office operations have become an essential measure of due diligence. Effective internal controls, strong systems and a well-staffed operations team are also critical for a private equity fund to succeed.

Measuring private market performance is certainly more complicated than measuring public market performance. It requires a clear view of relevant metrics and methodologies, is informed through multiple perspectives and demands specificity of analysis. Additionally, it can be subjective, prone to manipulation and ultimately represents an imperfect assessment of the success of a private market investment. However, private market performance measurement is likely to continue to evolve, thereby improving its current shortcomings.

The key for investors is to identify investment talent who can generate strong investment sustainably over time. While past performance is useful in evaluating a managers' historical track record, it won't guarantee future results. Hence, an investor needs to undertake deep "qualitative" investment with operational due diligence together to assess the likelihood of future investment success.

To learn more about how Mercer can help you with your investment strategies, click here.

1 Ramady, Mohamed, "Abraaj Capital: The Rise and Fall of a Middle East Star," Al Arabiya, July 3, 2018,https://english.alarabiya.net/en/views/news/middle-east/2018/07/03/Abraaj-Capital-The-rise-and-fall-of-a-Middle-East-star.html#.

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Fabio Takaki | 19 Dec 2019

Influential women can make a transformative difference in a company, industry or even a nation. When women are leaders, they are more likely to contribute to education, health and community development programs in the areas where they work and live, according to Mercer's "When Women Thrive, Businesses Thrive" report. Despite the positive benefits women leaders bring to businesses and communities, female decision-makers remain difficult to find in leading financial firms around the world. Women are also significantly underrepresented on the leadership teams of companies that receive investment capital. A new report from Oliver Wyman (part of MMC group of companies) shows that globally, women hold 20% of positions in executive committees and 23% on boards, but only 6% of CEOs in financial institutions are women. However, in the Middle East — traditionally one of the most challenging regions for female leaders to scale — women are gradually being named to leadership positions in the region's financial sector.1 As women make their mark in Middle Eastern finance and, in turn, their communities and region, business leaders around the world should take notice. Women Leaders in Middle East Finance   The growing number of influential women in Middle Eastern finance includes those working in banks, investment firms, financial law and consulting companies.1 For instance, in September 2018, Ms. Rola Abu Manneh was named CEO of Standard Chartered UAE, becoming the first Emirati woman to lead a bank in the UAE. With a long experience in UAE banking, Ms. Abu Manneh has the knowledge and leadership competencies to bring important business to her bank. In her first year as CEO, she has already advised Dubai-based Emaar Properties on the sale of its hotels to Abu Dhabi National Hotels.2 Ms. Rania Nashar is another great example — she is the first female CEO of Saudi commercial bank, Samba Financial Group, one of the largest in the region. Ms. Nashar has over 20 years of experience in the commercial banking sector and was named CEO in 2017, becoming the first female CEO of a listed Saudi Arabian bank.3 That was also a moment when Saudi Arabia began implementing reforms to promote gender equality as part of the KSA's Vision 2030, and Ms. Nashar says she wants to continue doing more. "I have to not only prove to myself that a bank of Samba's size can be run by a female CEO — and can achieve the best results in its history — I have to prove it for all the women in Saudi Arabia and in the world," Ms. Nashar notes. "I hope that I can be an honourable portrait for Saudi women."4 Ms. Lubna Olayan is also an influential leader in Saudi Arabia. For more than 30 years, she was the CEO of Olayan Financing Company, the holding company through which The Olayan Group's trading, real estate, investment, consumer and industrial-related operations are conducted in the Gulf region. She has received numerous awards and recognition, including landing in Time's list of the 100 most influential people in the world, Fortune's list of Most Powerful Women and recognized as a champion of women's economic empowerment.5 Why Gender-Balanced Leadership Matters   Women leaders such as these are helping to advance and make a shift in the gender balance in the region's financial sector. While they represent progress, there is still much to be done. Governments are working to increase the gender balance but transforming the mindsets of business leaders and overcoming bias is a slow process. However, it's a process worth pursuing. For organizations and nations that are facing workforce challenges, an underutilized female workforce represents a strategic opportunity to compete, grow and win, helping to transform the entire economy. According to Mercer's "When Women Thrive, Businesses Thrive" report, women's essential roles as providers, caretakers, decision-makers and consumers make them instrumental in the education and health of future generations, as well as the development of their communities. Women leaders can also be instrumental in building stronger and more collaborative teams; retaining, developing and nurturing talent; and bringing a diverse and new perspective for organizations. In fact, the Mercer report also shows that increased participation from women in the workforce has implications for the economic and social development of communities and nations. Economists have calculated that eliminating the gap between male and female employment rates could significantly boost gross domestic product by 5% in the United States, 9% in Japan, 12% in the United Arab Emirates and 34% in Europe. Achieving Gender Equity in Underrepresented Sectors   Finding the right approach for sourcing and engaging female talent depends on the individual company's culture and needs, but there are some broad strategies that may be effective globally. Mercer research shows that the chief building blocks for achieving gender diversity are health, financial well-being and talent management elements. 1. Health   Health concerns are of special significance to the female population, as women are affected by different health issues and illnesses than men, and they experience and use the healthcare system in different ways than men. For example, there are gender specific risk factors for common mental disorders that disproportionately affect women, affecting their capacity to be productive at work. Unipolar depression, a leading factor of working disability, is twice as common in women than in men.6 To achieve gender equity in business, companies must make healthcare available to women in the ways they most need, including: 1.  Flexibility for maternity leave 2.  Physical health, wellness and mental health support 3.  More autonomy and access to health resources 4.  Psychological support for severe life events 5.  Confidential medical support dedicated for women 2. Financial Well-being   Women reportedly have greater financial responsibility and greater financial stress than men. According to a 2018 study conducted by Prudential, the average woman has saved less for retirement compared to the average man. Only 54% of women have put aside money for retirement, and on average, they have saved $115,412. By contract, 61% of men have saved for retirement, and on average, they have saved $202,859. This greatly increases the likelihood of a woman living in poverty in retirement and is exacerbated by women's longer life expectancies.7 To address this, organizations need to ensure that women receive fair financial compensation, greater coaching and educational support in planning for their financial futures, tailored retirement options for women, and encouragement for systematic and regular contributions to savings and retirement accounts. 3. Talent Management   Women need opportunities for advancement, as well as training and development opportunities. In addition, they also need flexible work options that make it possible for them to fulfill other essential roles outside of work. Attention to management positions are critical to further improve the gender participation in executive levels. These jobs are usually high demanding in working hours, requiring management of teams, clients and superiors. For women who achieve such positions, it may also coincide with motherhood period, making it even more challenging if companies do not provide adequate working arrangements — such as flexible working options leveraging technology, childcare support, mentoring and leadership support for women, business resource groups and diversity and inclusion efforts and training. Women in the workforce have an undeniable power to make meaningful contributions and expand businesses. When financial institutions and governments begin to focus on the strategies required to get talented women working and leading, they will begin to see positive results. Not only can influential women bring business acumen to help grow organizations, but their roles in societies also enable them to make significant improvements in education, communities and the transformation of countries. Sources: 1. "The 50 Most Influential Women in Middle East Finance," Financial News, 29 Apr. 2019, https://www.fnlondon.com/articles/the-50-most-influential-women-in-middle-east-finance-20190429. 2. "FN 50 Middle East Women 2019," Financial News, 2019,https://lists.fnlondon.com/fn50/women_in_finance_/2019/?mod=lists-profile. 3. "Rania Nashar," Forbes, 2018,https://www.forbes.com/profile/rania-nashar/#20d8136e473c. 4. Masige, Sharon. "Raising the Bar: Rania Nashar," The CEO Magazine, 27 Jun. 2019,https://www.theceomagazine.com/executive-interviews/finance-banking/rania-nashar/ 5. "Lubna Olayan Retires as CEO of Olayan Financing Co.; Jonathan Franklin Named New CEO," Olayan, 29 Apr. 2019, https://olayan.com/lubna-olayan-retires-ceo-olayan-financing-co-jonathan-franklin-named-new-ceo. 6. "Gender and Women's Mental Health: The Facts," World Health Organization, https://www.who.int/mental_health/prevention/genderwomen/en/#:~:targetText=Unipolar%20depression%2C%20predicted%20to%20be,persistent%20in%20women%20than%20men. 7. "The Cut: Exploring Financial Wellness Within Diverse Populations," Prudential, 2018, http://news.prudential.com/content/1209/files/PrudentialTheCutExploringFinancialWellnessWithinDiversePopulations.pdf.

Varun Khosla | 03 Oct 2019

For decades, any conversation involving startups and executive compensation conjured images of Silicon Valley and shiny office buildings full of technology virtuosos working for innovative companies striving to be the next billion-dollar unicorn. Now, a new era of global startups is taking root in previously unexpected regions around the world. In fact, recent research reveals that $893 million was invested in 366 startups throughout the Middle East and North Africa. That number represents a $214 million increase from 2017, which saw $679 million in startup investments.1 Similarly, startups are increasing in Southeast Asia, largely driven by "SEA turtles" — locally born residents who studied and worked overseas (mostly in the West, in places like Silicon Valley) and are returning home to launch their own startup companies. The region has experienced a major inflection point, with VC investors in Southeast Asia investing over $7.8 billion across 327 deals.2 There's one key component all these startups need, however: leadership. But attracting and retaining executive-level talent and management teams can be a major challenge for these burgeoning startup hotbeds, especially when it comes to compensation. Corporate Investors Are Changing Executive Compensation   Many of the world's most recognizable startups were launched by charismatic, individual founding partners, such as Jeff Bezos, Jack Ma and Mark Zuckerberg. However, the rise of these luminaries and their compelling stories do not mirror the new era of startups blossoming around the world. In the Middle East and North Africa (MENA), for example, investment companies are providing the initial financial backing needed to launch startups. 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Since most global startups today are built around investment companies instead of inspirational individual founders, these companies must be diligent when determining how or how much to pay the executives — who can ultimately mean the difference between success and failure. How Much Should Executive Compensation Be?   Investment companies naturally want to maximize their profits, which means they want to retain as much equity in the startup and as many shares of the startup as possible. Every dollar, share of stock or option paid to startup executives is money the investment companies surrender to operational costs. However, low-balling startup executives or opting to hire those who aren't as skilled or experienced also comes with the risk of undermining the startup's ability to compete, grow and drive revenue. Financial arrangements that provide management with a potential share of equity (or shadow equity) require careful thought and consideration. 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Startups are popping up all over the world, ushering in a new frontier of ideas and innovation, as well as investors and executives who will create the next generation of future unicorns. As new trends continue to emerge for how executives in these startups are compensated, global startups will need to review their options with scrutiny to attract the best executive talent while maximizing returns for investors. Sources: 1. "2018 MENA Venture Investment Summary." MAGNiTT, January 2019,https://magnitt.com/research/2018-mena-venture-investment-summary. 2. Maulia, Erwida. "Southeast Asian 'turtles' return home to hatch tech startups." Nikkei Asian Review, 22 May 2019,https://asia.nikkei.com/Spotlight/Cover-Story/Southeast-Asian-turtles-return-home-to-hatch-tech-startups.

Fiona Dunsire | 05 Sep 2019

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Lewis Garrad | 30 Jan 2020

Employee engagement has become a critical topic for HR over the last 10 years as leaders have become convinced by two fundamental management ideas: having the best talent is essential to the future success of any organization, and having a highly engaged workforce is the most effective route to mobilize that talent to deliver what is needed. The result is that many organizations now invest in programs to boost engagement — mostly via an annual employee feedback survey. Yet, many organizations struggle to improve engagement and productivity in their workforce — no matter how much attention leaders and HR teams pay. Organizational inertia (or "drag") is a widespread phenomenon impacting progress on multiple levels.1 Most organizations find that people prefer to maintain the status quo rather than push for real change. This has led many HR leaders to explore what factors create more relevant and meaningful employee engagement. 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The most effective value propositions appreciate the whole employee experience rather than just the narrow "economic" role that work plays. It's relatively easy to make a living but it's hard to do work worth doing. A compelling employee value proposition makes an effort to do both. This means thinking past the transactional elements of the employee (pay and benefits) to incorporate more future-oriented elements of the relationships — the opportunity to innovate and create, experience a sense of sustainable wellbeing and develop new skills. The Value of Thriving at Work   Currently, many engagement programs are focused on answering how to get employees to do more for the organization. But the question that should be asked is, "How can the organization and the employee create a shared future together, using technology to create a healthier and more productive experience?" This changes the relationship dynamic and starts to value the contribution people make in a much broader way. HR leaders should look at building tools that help improve employee self-awareness, connecting what employees think about their work and how they behave in a powerful way. In summary, employee survey programs have been failing for years, in part because they have been so narrowly focused on outcomes, like an "engagement index." As technology starts to democratize the way we use employee feedback data, there is an opportunity to use it in a more two-way fashion to coach both individuals and managers. Keeping improved personal experience at the heart of innovations in employee surveys and feedback can help HR leaders make better decisions in adopting tools that will really work. For more information connect with us here: https://www.mercer.com/what-we-do/workforce-and-careers/talent-strategy/allegro-pulse-survey-platform.html Sources: 1. Garton, Eric. "Your Organization Wastes Time: Here's How to Fix It." Harvard Business Review, 13 Mar. 2017, https://hbr.org/2017/03/your-organization-wastes-time-heres-how-to-fix-it. 2. Young, Henry R.; Glerum, David R.; Wang, Wei; Joseph, Dana L. "Who Are the Most Engaged at Work? A Meta‐Analysis of Personality and Employee Engagement." Wiley Online Library, 23 Jul. 2018, https://onlinelibrary.wiley.com/doi/10.1002/job.2303. 3. Goler, Lori; Gale, Janelle; Harrington, Brynn; Grant, Adam. "Why People Really Quit Their Jobs." Harvard Business Review, 11 Jan. 2018, https://hbr.org/2018/01/why-people-really-quit-their-jobs.

Nancy Mann Jackson | 30 Jan 2020

Blockchain technology is not just for high-tech industries; it's gradually becoming an important part of even the most traditional professions, including agriculture. For example, India's Ministry of Commerce and Industry recently announced a blockchain-based e-marketplace for coffee producers. The marketplace is helping bridge the gap between coffee growers and buyers, allowing farmers to drastically increase their income. This initiative reflects a global trend of merging technological advances with agriculture. Blockchain Is Boosting India's Coffee Producers   Coffee produced in India is a premium product, produced by farmers who grow their beans under shade, hand pick them and dry them in the sun. The coffee is sold at premium prices around the world, but the farmers receive only a small portion of the profits, because there are many layers of buying and selling between the grower and the final consumer. The new blockchain-based marketplace app for trading Indian coffee brings growers closer to their ultimate customers, helping them earn fair pay and provide reliable traceability that allows consumers to trace their coffee from bean to cup. For customers, the ability to track the journey of the product they are buying can build trust. From the business perspective, that traceability can result in faster and more accurate recalls, reducing risk of food poisoning. By using the online marketplace, growers no longer have to depend on intermediaries. They can interact directly with buyers and earn fair prices for their products. Exporters can also use the online marketplace to quickly find reliable suppliers and traceable coffee products to meet their needs. When the Indian Coffee Board, a division of the Ministry of Commerce and Industry, introduced the e-marketplace in March 2019, a group of about 20 coffee farmers, exporters, importers, roasters and retailers were already registered on the platform from India and abroad.1 From a user perspective, the platform is easy to use. Coffee farmers can log their product credentials, including their relevant certificates, growing location and elevation, details about the crop and other information. For each lot of coffee sold on the marketplace, the system creates a block. That block and its credentials are then stored on the blockchain throughout its journey and are unalterable, creating a record known as a blockchain ledger. A blockchain ledger is useful for all types of agricultural products because of its ability to record and update the status of crops — from planting and harvesting to storage and delivery. A secure, immutable ledger ensures that large agricultural operators never lose a load and that consumers can access the history and details of their food's background. Agricultural Uses of Blockchain Are Expanding Globally   India isn't the only place where the benefits of blockchain technology are having a positive impact on agriculture. France and Ethiopia have also instituted blockchain marketplaces for coffee, and similar marketplaces are operating or under development around the world for other crops and agricultural products. In China, for instance, e-commerce platform JD.com traces the production, selling and delivery process for beef raised in Inner Mongolia and purchased by customers in Beijing, Shanghai and Guangzhou. By scanning a QR code, a consumer or retailer can see the size and age of the cow, its diet, when it was slaughtered, when the meat was packaged and what the results of the food safety tests were. Another Chinese company uses ankle bracelets on chickens to record the details of each chicken's life using blockchain, providing assurance to consumers that the free-range chicken they're paying for is actually free-range.2 Analysts expect that the blockchain technology market for agriculture around the world will continue to escalate, growing 56.4% from 2018 to 2022.3 Blockchain marketplaces allow producers and buyers to view trade history, local prices and other information that allow them to negotiate prices with confidence. As food producers around the world continue adopting blockchain technology, they bring more efficiency to their supply chains, improving food safety and traceability, as well as profit margins and consumer trust. Clearly, blockchain can bring about positive change in a variety of ways, but adopting and implementing the technology is much easier said than done. In an industry like agriculture, blockchain will have to reshape a decades-old framework, and that won't happen overnight. It's up to leaders everywhere to understand the value of this technology and get their teams on board with implementing it to achieve that value — even if it means starting small. Sources: 1. "Coffee Board Activates Blockchain Based Marketplace in India." Press Information Bureau, 28 Mar. 2019, http://pib.nic.in/newsite/PrintRelease.aspx?relid=189586. 2. Peters, Adele. "In China, You Can Track Your Chicken On–You Guessed It–The Blockchain." Fast Company, 12 Jan. 2018, https://www.fastcompany.com/40515999/in-china-you-can-track-your-chicken-on-you-guessed-it-the-blockchain. 3. "Global Blockchain Technology Market in the Agriculture Sector 2018-2022." Global Banking & Finance Review, 26 Sep. 2018, https://www.globalbankingandfinance.com/global-blockchain-technology-market-in-the-agriculture-sector-2018-2022-market-to-grow-at-a-cagr-of-56-4-with-agriledger-full-profile-ibm-microsoft-ripe-technology-te-food-dominating-rese/.

Jackson Kam | 30 Jan 2020

China is fostering a culture of innovation throughout its society — but most notably in its startup businesses. Multinationals can take advantage of this increased energy by investing in Chinese startups or taking a cue from how the successful ones — the "unicorns" — are meeting the demands of a growing Chinese consumer base. Multinationals must also be mindful of what Chinese workers desire most from employers, which is the ability to have a healthy work-life balance, according to Mercer's Global Talent Trends 2019 study. Currently, this is a very real challenge for employees working at tech startups. Developing a Culture of Innovation   To foster this culture of innovation within its industries, the Chinese government is making it easier for entrepreneurs to experiment and grow by implementing more "benign" business regulations. It's also ensuring that there is efficient infrastructure and local support in place.1 One sector that is particularly thriving under this new spirit is insurtech. For example: ZhongAn Online, a digital insurer backed by Ping An, Tencent and Alibaba, has launched a Software as a Service (SaaS) platform for insurance companies, giving them rapid access to ZhongAn's accumulated data on medical claims, medical insurance directories, drug prescriptions and local hospital information across the country.2 Another insurtech example is the partnership between Rui Xin Insurance Technology and China Lending, which aims to help the insurance company develop its own consumer financial platform offering China Lending's products. The two companies will also collaborate to develop more insurance products and attract more customers on both of their platforms.3 These insurtech partnerships exemplify how China is now setting the stage for experimental collaboration and innovation that challenges the status quo. Taking a Cue From Chinese Unicorns   Across many sectors, thousands of Chinese startups are disrupting industries — and stealing customers from established companies — by developing innovative business models to sell even more innovative products.4 Indeed, China has 120 successful startups, more than half of the 234 unicorns globally.5 Chinese startups are excelling because they can quickly reach scale in the large market, and they can tap a growing talent pool, particularly professionals with PhDs — twice as many as those in the U.S. They are also exhibiting a higher risk tolerance that's enabling them to conduct "fearless experimentation" to push out new products as fast as possible. With the rise of digital disruption, these unicorns are eager to take big risks and put their country back on the map as an innovator.5 How Multinationals Can Leverage This Energy   Hengyuan Zhu, associate professor and deputy chair in the Department of Innovation, Entrepreneurship and Strategy at Tsinghua University, believes that startups are successful because they are practicing "contextualized innovation." This entails collaborating with local customers within the country to make sure products meet the specific demands of those localities — and multinational companies operating in China should take a cue.6 "If they want to be successful, multinational companies will have to give more decision-making power to their local branches in China," Zhu said. "They need to do this so that they can leverage global resources, integrate into the innovation system and innovate in China for Chinese customers." An innovative workplace culture must be counterbalanced for organizations to be successful. For instance, organizations need to be willing to experiment but in a highly disciplined manner. Carefully taking this line of thought into consideration in all aspects of the workplace will ensure the success and application of a productive, innovative culture. Dealing with 996: An Unhealthy Work-Life Balance   There is a rising backlash occurring in the Chinese tech community, particularly among startups, that centers on what is known as "996.ICU." The name comes from the typical work schedule for Chinese programmers: 9 a.m. to 9 p.m., six days a week.7 Some startups are forcing their workers to abide by this schedule, either explicitly or by demanding certain KPIs in an unreasonable amount of time. Others are encouraging these schedules by appealing to long-held beliefs within the Chinese culture. For example, Alibaba founder Jack Ma has stated, "No company should or can force employees into working 996 . . . But young people need to understand that happiness comes from hard work. I don't defend 996, but I pay my respect to hard workers!"7 These sentiments are contrary to what the majority of polled Chinese workers shared during the Global Talent Trends 2019 study — that the foremost condition that would help them thrive in the workplace is the ability to manage their work-life balance. This also ranks ahead of their desire to have opportunities to learn new skills and technologies and have a fun work environment. Multinationals considering investment in Chinese startups or taking cues from unicorns may consider adopting many of the attributes of those successfully innovating while fostering a healthier work-life balance for Chinese workers — which can ultimately benefit the organization's bottom line, as well. Sources: 1. Jun, Zie. "Whole-of-society effort drives technology development in China," Global Times, 25 Jun. 2019, http://www.globaltimes.cn/content/1155732.shtml. 2. Fintech News Hong Kong. "ZhongAn Technology Launches AI-Powered Data Platform for China's Insurance Industry," Fintech News, 14 Aug. 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/. 3. China Lending Corporation. "China Lending Forges Strategic Partnership with Rui Xin Insurance Technology to Develop Online Financial Services Platform," PR Newswire, 15 Jul. 2019, https://www.prnewswire.com/news-releases/china-lending-forges-strategic-partnership-with-rui-xin-insurance-technology-to-develop-online-financial-services-platform-300884622.html. 4. Greeven, Mark J; Yip, George S. and Wei, Wei. "Understanding China's Next Wave of Innovation," MIT Sloan Management Review, 7 Feb. 2019, https://sloanreview.mit.edu/article/understanding-chinas-next-wave-of-innovation/. 5. Nheu, Christopher. "The Secret Behind How Chinese Startups are Winning," Startup Grind, 1 May 2018, https://medium.com/startup-grind/the-secret-behind-how-chinese-startups-are-winning-44876b196626. 6. Zhu, Hengyuan and Euchner, Jim. "The Evolution of China's Innovation Capability," Research-Technology Management, 10 May 2018, http://china.enrichcentres.eu/sharedResources/users/4807/The%20Evolution%20of%20China%20s%20Innovation%20Capability.pdf. 7. Liao, Rita. "China's startup ecosystem is hitting back at demand-working hours," TechCrunch, Apr. 2019, https://techcrunch.com/2019/04/12/china-996/.

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