A New Era for Private Funds in China?

September 29, 2014

Several years ago, alternative asset managers were enthusiastically regarding China as a new frontier for fundraising. Indeed, in 2011, Chinese private equity and venture capital firms raised substantially more money from local renminbi investors than from foreign investors. This was in part based on the premise that investment firms could access deals that were hitherto unavailable to them, but there was also a sense that raising money in mainland China was easier than raising capital in what was at the time a rather moribund fundraising market elsewhere. For these and other reasons, raising renminbi-denominated funds, traditionally the preserve of very local investment firms, was briefly at the forefront of the China strategy of a whole host of private equity firms.

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