Jean Eric Salata of Baring Private Equity

Speaking to AVCJ, Salata says that official encouragement has helped China's private equity industry grow, but that there is much work to be done by GPs, LPs and the Chinese government itself in breaking down barriers to foreign participation in the domestic market.

"I think it's only natural that the second-largest economy in the world has a domestic private equity industry and I think that's a healthy thing," he says. However, he notes that it is still too early to assess "how the interplay between foreign funds and RMB funds pans out."

Furthermore, Salata says that foreign participation in RMB funds is still limited. "Investors generally see it as a huge conflict of interest - I think rightly so." In his view, the industry and the Chinese government is aware that all parties need to find a way for offshore GPs and LPs to participate in the RMB space.

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• Topics
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• Renminbi fund
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• Jean Eric Salata
• Baring Private Equity Asia