Nomura becomes first Japanese firm to invest in Chinese private equity
Nomura Holdings said it would become the first Japanese financial group to make private equity investments in China, having reached an agreement with Shanghai-based Jiu You Quan Xing Equity Investment Fund. This follows the bank winning approval to participate in Shanghai’s qualified foreign limited partner (QFLP) scheme.
Nomura said in a statement released in late December that it will be a LP in Jiu You Quan Xing, which targets companies in the high-tech and biopharmaceutical industries. It didn't disclose how much it will invest in the fund.
The QFLP license allows Nomura to convert foreign capital from its own reserves or from third-party investors and commit it to the local currency fund. Shanghai was responsible for the QFLP pilot program and the scheme has since been expanded to other cities, including Beijing and Chongqing.
The Blackstone Group, The Carlyle Group and DT Capital were among the first participants in the Shanghai scheme in May of last year, closely followed by First Eastern Investment Group, SB China Venture Capital, and Shanghai Guosheng CLSA Venture Capital. It is understood that Carlyle and Blackstone were each given a quota of $100 million.
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