Origo Partners, an AIM-listed private equity investment and consulting company, has signed a memorandum of understanding with the Xinxiang municipal government to set up an RMB-denominated fund that will target commitments equivalent to $75 million.
The Origo China Sustainable Development Fund will receive an $18 million anchor investment from the Xinxiang municipal government. The fund will target fast-growing private Chinese companies in the clean technology and sustainable development sectors, the firm said in a statement. Its areas of focus will include renewable energy, electric vehicles, waste recycling, energy storage and distribution, sustainable agriculture and water related technologies.
A number of private equity firms have, in recent months, outlined plans to raise RMB-denominated private equity funds in partnership with local Chinese authorities and institutions. Most recently, Taiwanese financial holding company Fubon Financial entered into a three-way partnership with China Development Bank and the Fujian provincial government to reportedly raise RMB5 billion (€545.5 million; $732.4 million) for a fund that will invest in businesses in China and Taiwan.