The First National-Level FOF Launched in SIP
On December 28, CDB-SVG FOF held a plate-unveiling ceremony in Beijing for the first national-level equity investment fund of funds (FOF) in China. With the size of 60 billion yuan for the duration of 12 years, the FOF will invest mainly in RMB-based funds managed by outstanding professional teams in China.
Registered in Suzhou Industrial Park in Jiangsu Province, the FOF was jointly initiated by CDB Capital, a wholly-owned subsidiary of China Development Bank (CDB), and Suzhou Ventures Group (SVG). It has completed the first round of fund raising and got 15 billion yuan for Private Equity (PE) FOF and Venture Capital (VC) FOF. According to the official statement, ten billion yuan PE FOF managed by CDB Capital will be invested mainly in industrial M&A projects, while the remaining five billion yuan VC FOF managed by the SVG will be invested in start-up and growing venture capital funds. The FOF executives also decided to recruit Siguler Guff & Company, a well-established independent PE investment firm with rich experience in fund and FOF management, as a partner to co-manage the project with global vision.
After the ceremony, the CDB-SVG FOF signed strategic cooperation agreements with three industrial organizations, the Investment Committee of the Investment Association of China (IAC), China Private Equity Association, and China Venture Capital and Private Equity Association, to strengthen communications and to jointly promote the rapid and sound development of China's PE investment.
Originally published on Suzhou Daily
December 29, 2010