Hongshan Enters the Fray: Is the Global M&A Wave Really Here?

By Muxin Xu

Edited by Zhiyan Chen

With the Lunar New Year approaching, Hongshan has reached a definitive agreement with Marshall Group to acquire a majority stake in the iconic audio brand at a valuation of €1.1 billion (approximately RMB 8.4 billion). Under the terms of the deal, the Marshall family will retain over 20% of the company. The principal selling shareholders include Altor, Telia Company, Time for Growth, and Zenith VC.

1. This marks another international acquisition by Hongshan. In 2021 and 2022, the firm made strategic investments in Parisian designer label AMI Paris and acquired a majority stake in Seoul-based streetwear brand WE11DONE. Together with Marshall, Hongshan's overseas consumer investment portfolio now spans apparel, footwear, electronics, and cross-border e-commerce, counting among its holdings notable companies such as SHEIN, Amer Sports, Auking, Aventon, and Miracle Miles.

2. This sends a clearer signal: against a backdrop of shrinking equity investment markets, even an institution as large as Hongshan must expand overseas while moving toward heavier, buyout-style transactions.

3. Following the announcement, Hongshan's low-profile, investment-bank-style buyout team has come into view. Partner Qin Jia leads the buyout team, having previously worked in J.P. Morgan's North Asia M&A group. Taro Niggemann, Hongshan's European managing director, joined in April 2024 to hunt for internet and consumer investment opportunities across the UK and Europe, following a decade at Goldman Sachs.

4. For Hongshan, fundraising isn't the problem — deployment is. In July 2024, the firm closed an RMB 18 billion fundraise. With such a massive capital pool at its disposal, even a VC-native firm like Hongshan must embrace buyouts. And given its long track record of international investing, cross-border M&A represents a genuinely differentiated angle. Meanwhile, recent regulatory revisions — such as the November 2024 Measures for the Administration of Strategic Investments by Foreign Investors in Listed Companies — have cleared multiple systemic hurdles for cross-border M&A, potentially ushering in a golden era for Chinese outbound acquisitions in 2025.

5. Coincidentally, Hillhouse Capital also plans to launch an RMB 8 billion-plus global buyout fund in 2025. The fund will focus on global markets, particularly Asia — including China, Japan, South Korea, and Southeast Asia. Hillhouse has also expanded its teams in London, Japan, and Singapore, aiming to export Chinese industrial innovation and supply chain management expertise to these regions while sourcing investment opportunities worldwide.

6. Beyond direct execution, Hongshan is experimenting with alternative models for participating in cross-border M&A. In October 2024, Hongshan formed a joint venture with Li-Ning, holding a 45% stake. The entity will focus on expanding Li-Ning's overseas presence, with Hongshan contributing its richer international resources and team.

7. Founded in 1962 in the UK, Marshall has grown into a globally recognized wireless speaker brand with robust profit growth — revenue more than doubled from 2020 to 2024, reaching approximately €400 million. Looking across the European market in 2024, it's evident that a window for M&A in consumer and fashion has opened. According to Luxe.co statistics, five of the year's top ten global fashion brand acquisitions involved European targets: Richemont's acquisition of Italian high jewelry brand Vhernier; private equity firm Regent's purchase of Swiss luxury leather goods brand Bally; L Catterton's majority stake acquisitions of Nordic personal care brand STENDERS and a 40% stake in premium outlet operator Value Retail; and German luxury e-commerce company Mytheresa's acquisition of luxury e-commerce group YNAP.

8. In October 2024, Hongshan registered an entity under the name HSG Advisors UK Ltd., establishing a London office focused on late-stage and private equity transactions in consumer, consumer internet, healthcare, and new energy. Hongshan now maintains offices in both Singapore and London as "physical nodes" for overseas cross-border deals.

Image source: IC Photo