Chinese private equity firm FountainVest, which was founded by former Temasek Holdings Ltd. executives, is having no problems raising its first fund as two Canadian pension funds, Canada Pension Plan Investment Board and Teachers' Private Capital, committed $200 million each as limited partners.
The nascent firm was founded by Frank Tang and Terry Hu, formerly of Singapore's sovereign wealth fund Temasek, and two other Chinese natives that are veterans of Goldman, Sachs & Co. and J.P. Morgan Partners.
Canada Pension Plan Investment Board and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, have been increasing their commitments to the Asian market. Including the FountainVest investment, Canada Pension Plan now has over $1 billion committed to private equity and real estate investments in the region.
With Asian debt markets relatively free of the problems plaguing the U.S. and Europe, pension funds have been piling into Asian private equity funds. Last week Blue Ridge Partners closed a $1.45 billion fund for investment in China-based companies, only days after J.P. Morgan Asia Pacific announced a $750 million fund that will focus on middle-market buyouts in the region. - George White
See press release
See post about Blue Ridge Partners from Dealscape
See story about J.P. Morgan Asia Pacific from TheDeal.com
See related story about Temasek from The Deal newsweekly
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