Adveq to launch first RMB fund of funds

Swiss fund of funds manager Adveq has signed a letter of intent with Chinese investment holding company Dalian United to establish China’s first non-governmental private equity fund of funds manager.

Adveq and Dalian United will each hold a 50 percent stake in the investment management company, which will be incorporated in China. The new firm’s initial focus will be to form an RMB private equity fund of funds, according to an Adveq statement. No further details have been disclosed.

Adveq declined to comment beyond a prepared statement, saying it was too early to give more specific details.

Adveq signed a memorandum of understanding with the government of Shanghai Pudong New Area more than a year ago, Bruno Raschle, chairman and CEO of Adveq, told PEI Asia in September. It is unclear if that memorandum is related to this joint venture.

Also in September, Darren Wong, a managing director and head of Adveq’s Asian investments, said there were now enough fund managers in China to enable institutional investors to build a portfolio of “high quality” private equity investments.

An Adveq report released at the time noted that around 1,000 private equity fund managers operate in Asia Pacific, of which 300 are active in China. Adveq itself has committed to 20 private equity funds in China thus far, the report added.

In March, Adveq appointed Wong to its six-strong investment team in Beijing. Presently, the firm is in the market for its second Asia-focused fund of funds, which is targeting $350 million. The firm had raised more than $61 million for the fund of funds by May. Adveq’s debut Asian vehicle closed on more than $200 million in 2007 and is fully committed.

Based in Dalian, Dalian United owns businesses in the financial leasing, guarantee, banking and private equity sectors.