Chicago-based hedge fund firm Citadel LLC has completed fundraising under China’s pilot Qualified Domestic Limited Partner (QDLP) program, becoming the first to raise RMB from qualified Chinese investors to invest in overseas markets, according to information posted on the Shanghai municipal government’s website.
Officially launched last July, the QDLP pilot program aims to provide a window for international hedge funds to raise money in RMB from local Chinese investors, and then invest in overseas markets in U.S dollars.
Citadel Overseas Investment Fund Management (Shanghai) Co., Ltd., the U.S. hedge fund’s local Chinese unit, obtained approval to raise as much as RMB311.7 million (the equivalent of US$50 million) from local Chinese wealthy individuals and investors last summer.
At the time, the media reported that five other global hedge funds, including Man Group Plc, Winton Capital Management, Oaktree Capital Management, Och-Ziff Capital Management Group and Canyon Partners each received a US$50 million quota as well.
The fundraising process for Citadel "was quite smooth," according to the release issued by the Shanghai government.
Citadel then got approval to convert the RMB it raised to U.S. dollars in March, becoming the first company to complete fundraising under the country’s QDLP pilot program.
It’s unclear if Citadel raised the full US$50 million it was permitted to raise.