SINGAPORE-BASED Tembusu Partners is launching several investment funds totalling one billion yuan (S$205.6 million). This comes as the private equity firm looks to increase its investments in China, it said on Thursday.
This coincides with the Chinese central government's efforts to "liberalise the economy and promote innovation", the company added.
The move follows the company securing its Qualified Foreign Limited Partner (QFLP) status for its foreign fund management firm in Guizhou province. With the QFLP licence, investors would enjoy an "express lane" for regulatory approval and taxation without foreign currency convertibility issues. This would allow investors to make multiple direct investments in Chinese companies more easily due to shortened transaction time and investment process.
The funds launched would primarily be invested in technology, infrastructure, healthcare, tourism and impact-related projects in China, with investee companies being eligible for financial incentive schemes from the Chinese government. Tembusu will also receive "first-hand access to deal flow" through its strategic partnership with the Guizhou government.
The Guizhou firm is an 80-20 joint venture between Tembusu and a Guizhou state-owned entity.
Andy Lim, founder and chairman of Tembusu Partners, said the funds intended for launch will allow Tembusu to bridge the investment communities of China, South-east 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," he added.
Separately, former CapitaLand CEO Lim Ming Yan is joining Tembusu Partners as the chairman of its China advisory board. He had retired last year as president and CEO of CapitaLand after a 22-year career, bringing with him a wealth of experience in capital markets as well as strong networks in China.
"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," Mr Lim Ming Yan said.