Hopu split reports denied
Reports and market talk of a split at the top of Hopu Investment Management, the $2.5 billion China-linked private equity and multi-strategy investment group, have been denied by sources close to the firm, which in fact appears to be nearing the threshold where it could raise a second fund.
The reports and industry feedback suggested that Hopu had communicated the probability of a fundamental near-term change in the makeup of the firm to investors, though with the precise structure and timing of the outcome undetermined. Expectations were apparently high of a development or announcement at any time. However, sources close to Hopu denied that the firm had communicated any prospect of a split to its LPs, or that its principals had plans to form separate vehicles. With the deal size and pace of Hopu’s activity to date, the firm may indeed be nearing the 66-75% capital invested threshold at which a buyout-style firm typically begins to consider tapping the markets.
Hopu was formed in 2007 by former Goldman Sachs Gaohua partner Fang Fenglei with fellow Goldman alum Ong, and raised some $2.5 billion for its Hopu USD Master Fund I, LP, with anchor investors including Goldman and Singapore’s Temasek Holdings, as well as Japan’s Norinchukin Bank and Daiwa Securities Group. Hopu has been involved in numerous major China-related deals, including recently the IPO of coking coal logistics company Winsway and discussions around a possible investment into Canada’s PotashCorp., but has also branched into advisory roles, supporting Bridas Energy Holdings of Argentina in March in a $3.1 billion JV with China's China National Offshore Oil Corp. (CNOOC).
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