H&Q to launch first renminbi fund

Ta-lin Hsu, chairman of H&Q, told The Wall Street Journal that there has been a surge in interest from domestic investors in private equity. He added that the firm will continue to raise US dollar funds aimed at Chinese investors looking to invest overseas as well as foreign players targeting China.

Renminbi vehicles have in the last few years surpassed US dollar funds to dominate China fundraising.

In the past year, the likes of The Blackstone Group, The Carlyle Group and TPG Capital have all launched renminbi funds. It is thought that foreign firms investing through local currency vehicles face fewer administrative obstacles than through US dollar funds.

Blackstone was the first to launch a renminbi fund in August 2009. It announced in September that it was at the halfway point in fundraising for its RMB5 billion ($781.3 million) fund. The joint venture vehicle, known as Shanghai Blackstone Equity Investment Partnership, reached a first close in April, having received commitments from Chinese government entities, state-owned enterprises, and large domestic corporations.

The National Council for Social Security Fund (NSSF), China's state pension fund, Shanghai Jinfeng Investment, Shanghai Ace and Shanghai Lujiazui Financial Development, are reportedly among the LPs. The fund will focus on investments in Pudong New Area and surrounding areas of Shanghai.

Foreign players have reportedly struggled to raise capital in the face of competition from ambitious local firms.

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• Topics
• Greater China
• Fundraising
• Renminbi fund
• H&Q Asia Pacific
• Fundraising
• China
• Renminbi