Hong Kong-based Gen2 Capital Partners and China Private Equity Investments Holdings (CPE), a London-listed investment group, intend to form a strategic partnership that is aimed at facilitating European investment in China, according to a CPE statement.
Gen2 expects to become a “meaningful and significant shareholder” in CPE, Barry Lau, Gen2’s managing partner, told PE Asia.
Lau said the collaboration would enable European investors who want strict regulations attached to their investments to invest in the Greater China region via Gen2’s fund or through co-investment with the firm through CPE.
Gen2 launched its second China-focused mezzanine fund in September, targeting $275 million, PE Asia reported earlier. The fund will invest in China’s small and medium-sized enterprises in deal sizes ranging from $5 million to $20 million.
The CPE partnership was driven by increased interest in China from European investors, he said. “It’s very good timing. We’ve received queries from Europe for our imminent fund for structured credit investment in SMEs in China.”
Gen2 is an asset management firm headquartered in Hong Kong and a specialist in private equity investing in Greater China founded by Barry Lau and Paul Heffner. Gen2 currently has $500 million in assets under management and is primarily focused on East Asian investment opportunities.