Hopu Investment Management, founded by Goldman Sachs’ China partner Fang Fenglei, has bought approximately $400 million worth of shares in Bank of China, according to the Wall Street Journal, quoting a source close to the matter.
Hopu reportedly led a consortium of unidentified investors in the acquisition of around $700 million worth of shares when Edinburgh-based Royal Bank of Scotland sold its entire stake in the Chinese lender for $2.4 billion.
This is Hopu’s second investment from its fund. In its maiden deal, the firm invested $300 million into a Mongolian ore mine in April 2008.
Singaporean sovereign wealth fund Temasek committed $1 billion to the fund and Goldman Sachs, $300 million, according to media reports last year.
Previously, Fang headed Goldman Gao Hua Securities, Goldman Sachs’ China joint venture. When Fang started Hopu in 2007, he gave up his day-to-day duties but stayed on as chairman.
Hopu could not be reached for comment.