Singapore-based private equity investor Tembusu Partners is to launch several investment funds totalling at least RMB1.0 billion (SGD205.6 million) after securing the first Qualified Foreign Limited Partner (QFLP) status awarded to a foreign fund management firm in China’s Guizhou Province.
The pan-Asian investment firm also announced the appointment of Lim Ming Yan, former CEO of property giant Capitaland, as Chairman of its China Advisory Board as Tembusu seeks to increase in investments in China, coinciding with the central government’s efforts to liberalise the economy and promote innovation.
Tembusu’s 80-20 joint-venture with a Guizhou state-owned entity is the first in the southwestern province to secure the QFLP license. The latter allows investors to enjoy an ‘express lane’ for regulatory approval and taxation, without the issue of foreign currency convertibility. By shortening transaction time and investment process, foreigners can make multiple direct investments in Chinese companies more easily.
Funds launched by Tembusu will invest primarily in technology, infrastructure, healthcare, tourism and impact related projects in China. Through the funds, investee companies will also be eligible for financial incentive schemes from the Chinese government.
Through a strategic partnership with the Guizhou government, Tembusu will receive first-hand access to deal flow. Tembusu has established an office in Guiyang, the provincial capital, since 2017. With operations in Shanghai and Guiyang it is registered as a private equity fund manager with the Asset Management Association of China. Established in 2006, Tembusu holds a Capital Markets Services licence issued by the Monetary Authority of Singapore.
In line with this initiative, Tembusu announced the appointment of Lim Ming Yan as Chairman of Tembusu’s China Advisory Board. Lim retired late 2018 as President and CEO of Singapore Exchange-listed Capitaland Limited, ending a 22-year career with one of Asia’s largest real estate development companies. He brings with him a wealth of experience in capital markets as well as strong networks in China.
“I am delighted to join Tembusu’s China Advisory Board. Tembusu is a well-regarded Singapore homegrown private equity specialist which has helped fund and nurture a number of emerging Asian companies. I hope to bring my experience and understanding of China to assist Tembusu in its China initiatives,” Lim says.
Andy Lim, Founder and Chairman of Tembusu Partners, says: “The funds we intend to launch will enable Tembusu to bridge the investment communities of China, Southeast Asia and the rest of the world through accelerated deal flows. As China continues to open up and connect with the world, the funds will pave the way for more to participate starting from Guizhou. I am honoured that Ming Yan has agreed to spearhead our China Advisory Board and am confident that he will open up new opportunities as we seek to participate in the growth of some of China’s most promising companies.”
