Qianhai Fund of Funds (“Qianhai FoF”) is a Limited Liability Partnership fund of funds set up in accordance with the Shenzhen Municipality’s plan to deepen the sophistication of the private investment ecosystem and it is encouraged by favorable tax policies via the new Qianhai economic district. The central government of China State Council document, “Supporting Related Policies of Development and Opening in Shenzhen Qianhai, a Shenzhen and Hong Kong Modern Service Industry Cooperation District”, also supports the domestic fund of funds industry for venture capital and private equity and where Qianhai Fund of Funds plays a pivotal role.

Qianhai Fund of Funds LLP established in December 2015 has initial assets under management (AUM) of RMB 21.5 billion. The successful founding of Qianhai FoF represents a completion of the fourth of eight items for financial innovation as laid out by the State Council. The formation of Qianhai FoF is of great significance as it advances China’s alternative asset investment industry by introducing an accredited institutional investor model to the industry and transforming the local private investment industry through the emergence of professional limited partners.

Key Features of the Qianhai FoF:

I. Leading Blue-Chip Institutional Investors

The Qianhai FoF is the largest domestic FoF at this time. Our limited partners (LPs) have financial strength, stellar reputation, industry influence, and deep networks. The LPs fall into four categories: government entities, insurance companies, financial institutions, and well-known corporations.

Investors from each category include:

Prospective LPs include: China Telecom, Zhongyuan Bank, China Construction Bank, Ping An Bank, and Shenzhen Longgang Financial.

II. Top Notch Management Team

The Qianhai FoF gathers managers with deep understanding in private equity investment, rich experience and extensive resources. The Managing Partners come from China’s top venture capital firms. Their average individual investment and management experience exceeds twenty years and their combined AUM exceeds one-hundred billion RMB. Their investment achievements are top rated the industry.

Managing Partners

III. Healthy Balance of Government and Private Capital

Qianhai FoF manages both government and private capital. State-owned capital bolsters the reputation and stature of Qianhai FoF in China. Private investors make up the majority of LPs and therefore, financial returns and stellar performance are the primary goals of the fund, while at the same time, good performance ensures a sustainable platform and viable institution.

IV. Fund of Funds and Direct Investments

Based on local conditions and investors’ preferences, Qianhai FoF makes investments not only into the very best of China VC and PE managers and direct investments into companies, but also makes direct investments into the best short-term low-risk opportunities. The intention of the shorter term direct investments are multi fold: increase returns and reducing the impact of the J-curve by creating a smoother and continuous cash inflow for investors.