Jiuding Strategic Fund, which is targeting RMB3bn, has picked up about 80 per cent of its commitments from institutional investors, including state-owned China reinsurance, according to AVCJ.
It said the fund would target investments across retail, pharmaceutical, agriculture, mining and services, with the aim of getting companies listed as quickly as possible.
Jiuding is also currently raising a specialist mining vehicle, and has successfully closed 14 funds since 2007, it added.
China First Capital’s Peter Fuhrman said last month that the country’s private equity firms appeared to have more confidence in their ability to raise money than to invest it well, with the market exhibiting a concerted rush to get money out the door.
He said that was one reason for the recent rash of take-private deals of Chinese listed companies, with entrepreneurs ultimately suffering because private equity firms are unwilling to look at smaller mid-market deals. T
The trend is for an industry that has become dominated by asset managers, not investors, Fuhrman added.
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