China Everbright sets up $288m fund with local government

The new vehicle will receive RMB1 billion from the Liyang government via one of its investment arms, while the rest will be from CEL, which will act as manager. China Everbright Bank's branch in Changzhou will also participate, according to a statement, although it is not clear in what capacity. 

The fund-of-funds will invest in areas including intelligent manufacturing, IT, new materials and energy, healthcare, aviation, culture, tourism and entertainment. It will leverage the resources of CEL, and collaborate with the firm’s other investment vehicles, including other fund-of-funds both in China and abroad.

CEL is now managing four fund-of-funds with combined assets of RMB17.1 billion. In total, the state-owned firm had established 55 funds with aggregate commitments of HK$138.9 billion ($17.7 billion) as of June 2018.  

China is encouraging the development of more government-led or participated fund-of-funds, usually in the form of a joint vehicle between the investment arm of a state entity and a GP. One of the biggest deals in this space was Guochuang FOF, which was set up in 2010 by state-owned China Development Bank and Suzhou Venture Group. 

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• Topics
• Greater China
• Fund-of-funds
• Fundraising
• GPs
• China
• TMT
• China Everbright
• Fund formation