TPG Capital has put one of its partners at the helm of Li Ning, the struggling Chinese sports brand, in a sign that the US private equity group’s bet on middle class consumption in China is turning sour.
Kim Jin-goon, former managing director of Dell in South Korea, who joined the US private equity group in 2006, was on Thursday appointed executive vice-chairman to lead the company alongside Li Ning, the eponymous founder. The company also announced the departure of Zhang Zhiyong, chief executive, who had been with the company since its launch in 1989. Mr Li, chairman, would be the temporary CEO until a replacement for Mr Zhang is found.
Li Ning, which last month said it expected a substantial decline in full-year profit, is one of several bets on the growth of middle class spending in China for TPG, along with Daphne International, a low end chain of shoe stores, and China Grand Auto, the largest car dealership in China, among others.