FountainVest Partners has raised almost $1 billion for its first China-focused fund.
Anchor investors include Singapore sovereign fund Temasek as well as Canadian pension funds Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan. Temasek committed $50 million and the pension funds each committed $200 million, a source said in January.
The FountainVest China Growth Capital Fund will make investments ranging from $50 million to $150 million in companies involved in China’s consumption, urbanisation and sustainable development. It aims to complete 15 to 20 transactions in the next four to five years, the firm said.
Despite the global downturn, FountainVest is optimistic about China’s long term growth prospects, said Frank Tang, the firm's co-founder and chief executive.
Tang was formerly Temasek’s senior managing director of China investments. He left in September last year to establish FountainVest with other senior Temasek executives, including Terry Hu, George Chuang and Chenning Zhao.