TPG’s Bonderman says Li Ning will come good

David Bonderman, founder of TPG Capital, says the $48 billion private-equity giant’s turnaround plan for Chinese sportswear company Li Ning needs time to come good.

Speaking at a recent conference organised by the Emerging Market Private Equity Association, Bonderman cited Li Ning as an example of the kind of value-adding operational experience TPG can bring to companies in emerging markets.

Because investments in emerging markets are unlevered and often in minority positions, private equity is more about improving company operations than about leverage, he explains. “In emerging markets, we rely on our ability to be agents of change in a business,” Bonderman says. “These markets are usually...