Singapore-based DBS Bank has announced that its private equity arm has established a USD100m onshore renminbi fund to invest in promising unlisted companies in China.
Singapore-based DBS Bank has announced that its private equity arm has established a USD100m onshore renminbi fund to invest in promising unlisted companies in China.
DBS Private Equity is among the first few foreign private equity investor groups to set up a local investment vehicle in China.
The investment vehicle, DBS Private Equity Enterprise, is wholly owned by DBS Bank through its subsidiaries DBS Nominees (Private) and DBS Capital Investments.
The fund will provide capital to mid-to-late stage China companies in growth industries, with a view to eventually listing them on the domestic A-share market.
Over the next two to three years, the fund will invest USD10m-USD20m on average in each investee company, in exchange for minority stakes in them.
Melvin Teo, managing director and head of DBS Private Equity, says: ‘China is an important growth market for DBS, and we believe in its long-term potential. As one of the best capitalised banks in Asia, DBS is well-positioned to stand by our customers and cultivate new ones, at a time when many of our competitors are scaling back their operations. We are staying the course in Asia, and the creation of the fund allows us to partner promising PRC companies to create long-term value for the Chinese economy.’
In conjunction with the establishment of the fund, DBS Private Equity will open a Shanghai office to further expand its investment activities in China.
DBS Private Equity made its first investment in China in 2002, and has since made successful investments in Chinese companies including Yingli Green Energy Holding, Yangzijiang Shipbuilding (Holdings) and China Infrastructure Machinery Holdings.
