Son of ex-China politburo member raises PE fund
The son of He Guoqiang, until last year the member of China's politburo standing committee responsible for policing corruption in government, has established a private equity firm called Nepoch Capital.
According to Reuters, Nepoch has so far raised $200 million from investors - in a tough fundraising environment - and is expected to reach its target of up to $500 million by the middle of the year. The firm has already completed two deals.
Apparently investors only get to meet He's son, He Jintao, once they have agreed to commit capital. His co-founder is Duncan Zheng, a former principal at European buyout firm Triton Partners.
Princeling funds - so called because they are set up by the offspring of senior party officials - are nothing new in China, although the founders sometimes have to step back, supposedly so as not to draw negative attention to the parent. In this context, the timing of Nepoch's emergence is interesting.
Last year, Lefei Liu, who set up CITIC Private Equity, relinquished the title of chairman - although he remains CEO - ahead of his father's elevation to the Politburo Standing Committee. Winston Wen, son of former Premier Wen Jiabao, left the PE firm he founded, New Horizon Capital, to take up a position at a state-owned enterprise in 2010.
Other children of senior government officials currently active in private equity include: Jeffrey Zeng, son of former planning chief Zeng Peiyan, who is managing partner of Kaixin Investment and senior managing director at CITIC Capital; Alvin Jiang, grandson of former President Jiang Zemin, who works for Boyu Capital; and Jeffrey Li, son of former Chinese People's Political Consultative Conference (CPPCC) head Li Ruihan, who is CEO of GL Capital.
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