China International Capital Group (CICC) and Shanghai International Group (SIG) will establish Golden Partners Capital, a private equity firm that will manage up to RMB 20 billion ($2.9 billion) in capital. CICC and SIG will own half each of the new firm.
Golden Partners Capital is aiming to raise RMB 8 billion for its first fund, which will target investments in the financial services sector, according to a Reuters report.
Bei Duoguang, head of investment banking at CICC, will take the role of president at Shanghai-based Golden Partners. He told the news agency fund raising was more difficult than expected, due to the poor economic situation.
In other China private equity news, last week saw Sequoia Capital China co-founder Zhang Fan leave the firm after four years. Fan established the China affiliate of the US venture capital firm in 2005 along with fellow managing partner Neil Shen, who is currently involved in litigation with The Carlyle Group after allegedly backdating an investment agreement.