Chinese asset management firms Bohai Industrial Investment Fund Management Co., Ltd. and Harvest Fund Management have cooperated with American investment consulting firms Rosemont Seneca Partners and Thornton Group LLC to raise a US$1.5 billion fund to invest in overseas companies, according to media reports.
The fund will raise money in both RMB and US dollars. It will take advantage of the Shanghai Free Trade Zone (FTZ) to convert RMB into U.S. dollars, and in turn make overseas investments.
The vehicle will invest in advanced manufacturing industry, financial services, energy and resources, as well as consumers through overseas mergers and acquisitions.
After being established last December and started fundraising in the second quarter, the fund has increased its target from US$1 billion to US$1.5 billion due to overwhelming investors demand.
Bohai Harvest RST (Shanghai) Equity Investment Fund Management Co. Ltd., which is registered in the FTZ, will manage the fund.
Founded in 2006 by BOC International Holdings, Bohai Industrial Investment Fund is a RMB-denominated investment vehicle in the area of Bohai in Northern China.
Established in 1999, Harvest Fund Management is one of the largest asset management companies in China. In addition to private equity funds, it also manages mutual funds and real estate investment products.