DBS Private Equity has set up DBS Private Equity Enterprise, a $100 million fund to invest in unlisted companies in China.
Over the next two to three years, the fund will invest between $10 million to $20 million per deal, for minority stakes in mid-to-late stage China companies. It aims eventually to list the companies on the domestic A-share market, according to a statement from the bank.
DBS Private Equity has said it will aim to leverage its Asian banking network to help investee companies grow their businesses.
The firm will also open an office in Shanghai to help source deals alongside its offices in Singapore and Hong Kong, which cover the South and North Asia markets respectively.
DBS Private Equity has been investing in China since 2002, in companies such as Yingli Green Energy, Yangzijiang Shipbuilding and China Infrastructure Machinery. The firm typically provides capital and mezzanine debt financing to portfolio companies. In addition, it also supports them in business development, strategic planning and corporate finance activities.
Headquartered in Singapore, DBS Bank is the largest bank in Southeast Asia by assets. It provides services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East.
DBS Private Equity could not be reached for comment at press time.