SAIF Partners to launch China hedge fund – report

The negotiations with investors over the fund are at an early stage, according to Reuters, but the current intention is employ the long-short equity strategy - the most frequently adopted hedge fund strategy in Asia.

Headed by ex-World Bank economist Andrew Yan, SAIF's $4 billion under management makes it one of China's largest homegrown PE firms.

The marketing materials for SAIF Partners Greater China Fund listed Brandon Lin, a partner who joined the firm from Credit Suisse in 2001. Lin works alongside Oliver Liang Zeng, who previously worked at CICC HK Asset Management and the now-defunct Asia hedge fund Boyer Allan.

SAIF is one of numerous private equity firms to branch into the hedge fund space. The likes of The Rohatyn Group, D.E. Shaw and TPG Capital have long recognized the shortcomings of focusing on one particular asset class and adjusted their investment strategies to offer both hedge fund and private equity strategies under one roof.

According to Michelle Leung, a partner at Lunar Capital, most investors are open-minded about fund managers with different strategies. As long as multi-strategy GPs are good fiduciaries, with good governance and the ability to manage conflict, many LPs consider them in a positive light.

"As long as the lines are clearly delineated, having one manager looking at different strategies is probably a good thing," Leung told AVCJ. "It really depends on how good the managers are."

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• Topics
• Greater China
• Funds
• SAIF Partners
• China
• Hedge funds