CVC Capital Partners, the global private equity fund manager, has launched operations in Beijing, its first office in mainland China. The firm said that the new office in Beijing along with the existing one in Hong Kong will allow it to target Chinese companies and invest in them.
A CVC spokeswoman told PEO that the Beijing office will invest mainly out of CVC Capital Partners Asia Pacific Fund III, which closed on $4.1 billion (€2.6 billion) in April.
The Beijing office will be headed by Zhu Wei, who has also been appointed as managing director. Wei will report to Maarten Ruijs, managing partner and chief investment officer of CVC Asia Pacific.
Wei joins CVC from Goldman Sachs, where he was a managing director of the investment banking team in China and headed the bank’s Shanghai coverage, CVC said. He was also a managing director of Goldman Sachs Gao Hua Securities. Before Goldman, he was the president of management consultant A.T. Kearney’s Greater China operations and president of Roland Berger China.
William Ho, managing director of CVC, said in a statement: “China continues to be a highly attractive market for CVC and we are committed to China as a long term and trusted investor.”
Wei joins Francis Leung, William Ho and Alvin Lam on the firm’s China team. Formed in 1981, CVC manages approximately $46 billion (€29.3 billion) in private equity funds globally. It has made more than 30 investments in Asia, with an enterprise value of more than $19 billion.
A presence in Beijing offers proximity to China’s regulators and powers that be, and that is one of the possible factors drawing a number of private equity firms to establish offices in the city. In May this year, Partners Group, the Swiss alternatives manager, launched its Beijing office. Other global private equity firms such as Blackstone and Apax Partners have also, in recent times, revealed plans to establish operations in the Chinese capital.