Preqin’s Investor Intelligence currently tracks 30 private equity fund of funds managers based in emerging markets around the world that are actively investing in the private equity asset class. In total, these fund of funds managers have assets under management of over $11bn. Preqin’s data shows that China-based fund of funds managers alone represent a significant 63% majority of this group. The three largest private equity fund of funds managers headquartered in emerging markets are Shanghai Chengtou Holding, Oriza Holdings, and Beijing Equity Investment Development Management. All three are based in China, albeit in different cities, and have combined total assets of $6.8bn.
Shanghai Chengtou Holding has nearly $5bn in assets under management, and is the fund manager of Chengding Environmental Industry FOF, a private equity fund of funds which closed on CNY 2,005mn ($316mn) in 2012. The firm has previously made a direct fund investment into a buyout fund, but now focuses on gaining exposure to venture capital vehicles through its funds of funds. Geographically, Shanghai Chengtou Holding focuses solely on opportunities within China, and has a particular preference for this focusing on environmental-related industries.
The second largest active fund of funds manager based in emerging markets is Oriza Holdings, which has $973mn in assets under management. The firm’s first fund of funds vehicle, SIP Venture Capital Fund of Funds, held a final close on CNY 1bn ($128mn) and has a 2006 vintage. Oriza Holdings is currently fundraising for its second vehicle, GC Oriza Fund of Funds, which has a target of CNY 5bn ($772mn). The firm has a preference for venture capital vehicles that invest in bio-medicine, energy, IT and environmental protection sectors in China.
Beijing Equity Investment Development Management is the third largest private equity fund of funds manager in this group, and is based in Beijing. With $810mn in assets under management, the firm invests in private equity vehicles through its fund of funds series, Beijing Equity Investment Development Fund. It invests in a range of underlying fund types, inclusive of buyout, growth and venture capital vehicles, and has a preference for funds that focus on opportunities in Beijing.