Ex-MVision MD to launch USD funds platform at Chinese GP

Harvest Investment Management is the PE investment arm of Harvest Fund Management, one of China’s largest mutual fund managers with about $180bn of AUM.

Dennis Kwan, a former managing director at MVision Private Equity Advisors in Hong Kong, has been enlisted by a Chinese general partner to help raise US dollars for the first time, Private Equity International has learned.

Kwan, who will remain in Hong Kong, joined Harvest Investment Management in an investor relations capacity to launch a USD funds platform, according to three sources with knowledge of the matter. He was named head of investor relations in Q2 and will work with an investment team in Beijing, two of the sources said.

Kwan spent six years at MVision and had been a partner with Meteor5 Capital Advisors, an emerging managers-focused vehicle launched by four MVision executives in 2018, per his LinkedIn profile.

HIM is the private equity investment arm ‘incubated’ by Harvest Fund Management, one of China’s largest mutual fund managers with about $180 billion of assets under management, according to its website. The unit is understood to manage just under $1.5 billion in renminbi-denominated growth equity funds, which it will continue to raise alongside the USD vehicles.

The firm’s portfolio includes AI chip designer Horizon Robotics, ride-hailing business SLCS and home security provider YunDing Technology. HIM’s investment activity is led by chief executive Xiaochuan Qiu.

It is unclear which LPs HIM will target for its USD strategy.

Chinese GPs anticipate an uncertain future with western investors. Escalating tensions have prompted concerns in Asia that US public pensions will face government and public pressure to reduce their exposure or allocations to Chinese funds – a dynamic that is already playing out in public markets.

China’s RMB-denominated private equity market could gain fresh appeal for international LPs. In Q2, Schroder Adveq became the latest – and one of only a handful of western firms – to be approved by Shanghai’s Qualified Foreign Limited Partnership scheme, which enables foreign investors to access a pool of GPs that dwarfs China’s USD market.

The RMB universe is vast. Yuan fundraising raked in at least the equivalent of $163 billion last year compared with just $22 billion from international investors, data from Schroder Adveq and advisory firm Zero2IPO show.

MVision and HIM declined to comment.