Goldman Sachs Private Equity has raised a $600 million (€416 million) fund of funds for Asian investments. The fund is the largest Asia-focussed fund of funds raised this year, and has already committed to “five or six managers” in the region, according to a spokesman for the firm.
The new fund is Goldman’s first Asia-focussed fund of funds, having previously made investments in the region from its global fund.
The firm has found success with past regional deals: Goldman earned three times its money on its $500 million investment in South Korea’s Kookmin Bank, and has earned a 2.5 times return on its $2.6 billion investment in the Industrial and Commercial Bank of China in 2006.
But in recent months the firm has run into regulatory problems in its direct investments. China’s Securities Regulatory Commission blocked two of Goldman’s proposed take-private in China: its $119 million acquisition of a 10 percent stake in Shanghai-listed Fuyao Glass Industries and its $96 million acquisition of a 10.7 percent stake in appliance maker Midea.
Goldman’s spokesman declined to comment on whether the new fund of funds would seek to invest with domestic or offshore fund managers.
Goldman’s partner in a Chinese security venture, Fang Fenglei, recently announced that he will take charge of two domestic private equity funds: the $2 billion Government Investment Corp, a sovereign wealth fund set up in partnership with Singapore’s Temasek Holdings, and the $677 million China-Singapore Hi-Tech Industrial Investment Fund, set up in partnership with state-backed firm Suzhou Ventures. Goldman did not say whether it would commit capital to either of Fang’s funds.