ARC China, a Hong Kong-based fund management company and merchant bank, will launch an RMB private equity fund platform along with China’s National Development and Reform Commission International Corporation Centre (NDRC-ICC) and California-based venture capital firm Westly Group.
The partnership will enable ARC China to leverage the NDRC’s networks and influence over local governments as well as Westly Group’s management experience, Alan Chen, an ARC China senior vice president, told sister news site PEI Asia.
ARC China plans to raise between RMB200 million ($29 million; €20 million) and RMB300 million each for about five funds. The firm aims to close the funds by the second quarter of this year, Chen said.
The funds are structured as foreign invested venture capital enterprises (FIVCEs) and are targeting investors mainly from the US and Europe, he added. They will partner private and public entities in tier II and tier III cities such as Jiangsu, Shanxi and Sichuan, to make investments in sectors including renewable energy, consumer products and services, business services, healthcare and infrastructure.
Previously, ARC China has partnered Geneva-based asset manager Semper Gestion to invest in the country. In China, the firm has offices in Shanghai and Chengdu.
NDRC is China’s economic planning agency. Its main functions include formulating and implementing macroeconomic policies, guiding and promoting economic restructuring and monitoring and adjusting economic performance.
Based in Menlo Park, Westly Group is a clean technology-focused venture capital firm.