Schroders, Thailand's KBank launch renminbi PE fund
Schroders Singapore and KBank Private Banking, a unit of Thailand’s Kasikornbank, have jointly launched a Thailand-based renminbi-denominated China private equity fund of undisclosed size.
The fund is touted as a first-of-its-kind wealth management product offering Thais “unparalleled” access to Chinese private equity. Schroders Capital will act as the manager. It has an established qualified foreign limited partnership (QFLP) programme in China through which onshore funds can raise capital from offshore
Schroders said the fund is designed to capitalise on opportunities arising from dislocation in China by investing in leading high-growth companies that offer attractive discounts in the secondaries market. The strategy focuses on technology, consumer, and healthcare, which are seen as aligned with China’s broader development trends.
By focusing on secondaries, the fund aims to benefit from a shorter investment term versus conventional PE funds. Schroders said there was potential to scale the business rapidly in this space, which remains nascent in China despite attractive long-term fundamentals.
“China’s potential to be the world’s major growth driver in the medium term remains robust,” said Lily Choh, Schroders’ head of South Asia and CEO in Singapore, in a statement.
“The trend in allocating to private markets is accelerating as investors are increasingly seeking out alternative sources of return. Along with our global private equity investment specialists, we look forward to pioneering innovative solutions that resonate with our clients' evolving preferences to unlock a broad range of opportunities in private markets.”
Schroders Capital has been active in China private equity for about 20 years and claims to have one of the largest local private equity teams with more than 20 professionals. The fund launched alongside KBank is its sixth renminbi vehicle to date. Globally, the firm has EUR 88bn (USD 93bn) in assets under management (AUM).
Earlier this week, Schroders Capital launched a global debt and credit business, essentially reorganising existing competencies in debt and speciality finance. The new platform will oversee some USD 30bn in AUM.
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