Global private equity firm TPG Capital is launching a second RMB-denominated fund in China, a spokeswoman for the firm confirmed to PEI Asia.
Only one day ago, an industry source confirmed TPG had launched its first RMB-denominated fund, which will be based in Shanghai and has a RMB5 billion (€579.7 million; $735.5 million) target. The firm’s spokeswoman said the second fund would be set up in Chongqing, but declined to give any further details. According to a report in Reuters, it is also targeting RMB5 billion.
“I believe the growth of Western China will be the defining story of the next thirty years, creating vast investment opportunities and we would like to be part of it,” Sing Wang, co-chairman of TPG China, was quoted as saying in the Reuters report.
The Chongqing fund, which is expected to start fundraising in the next few months, will make on-shore investments to expand Chinese companies to and from Western China, the report added. This is in contrast to the Shanghai-based fund, which will invest in mid- to large-sized Chinese firms with a focus on the financial services, consumer, retail and healthcare sectors.
The Carlyle Group is the only other global private equity firm to have set up two RMB funds. In January, the firm signed a memorandum of understanding with the Beijing Municipal Bureau of Financial Work to set up a RMB5 billion-targeted fund, which held its first close on RMB2.4 billion in July. In February, it signed an agreement with local conglomerate Fosun Group to sponsor and manage a Shanghai-domiciled RMB-denominated private equity fund.