Greater China-Focused Funds of Funds in Market

by Patrick Adefuye

  • 19 Jan 2012
  • PE

There are currently 29 private equity fund of fund vehicles that are raising capital that include an allocation to Greater China. These funds make up around 19% of the total number of funds of funds currently in market. The majority of these multi-manager funds have a wide regional focus; however nine will invest in Greater China-focused funds solely. These include TSF RMB Fund II, which is managed by China-based TS First Fortune Asset Management. The vehicle is targeting $77mn and plans to invest in a diversified range of industries in China - including IT, renewable energy, medical technology and retail - through venture capital funds. Jade China Value Partners II, managed by China-based Jade Invest, is targeting $300mn and has a core focus on growth capital and expansion funds with a sole focus on China. 

Of the 29 vehicles, 10 are managed by managers based in Greater China (eight in China and two in Hong Kong), with seven of the vehicles are managed by a US-based manager, and three by a Switzerland-based manager. An example of a US-based private equity fund of funds manager raising capital for a vehicle with a focus on Greater China is JPMorgan Asset Management - Private Equity Group. The manager is seeking $750mn for its JPMorgan Asia Private Equity Fund, which will target buyout, venture capital and growth capital vehicles. 

The target size of Greater China-focused private equity fund of funds vehicles seeking capital range from $77mn to $1.54bn, with the average vehicle targeting $419mn from investors.

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