Sailing Capital Management, an investment firm controlled by Shanghai International Group (SIG), has launched a RMB5 billion ($821m) buyout fund through its subsidiary, Shanghai Sailing Industrial Capital.
The fund plans to support cross-border deals, and will leverage its size up to over RMB20 billion through bond issuance, loans and equity investments, according to media reports.
Sailing Capital’s CEO Xiaodong Liu said that the company has signed an agreement with the Shanghai Stock Exchange to support listed companies to acquire overseas targets and incorporate these businesses into the domestic listed entity.
Sailing Capital currently manages Sailing Capital International, which has backings from Shanghai municipal government and relevant ministries. It has raised RMB12 billion in its first round, according to its website.