Neuberger Berman is expanding its product offering in China with the expected launch of its fourth qualified domestic limited partnership (QDLP) fund.
The firm’s wholly foreign-owned enterprise (WFOE) in Shanghai has received regulatory approval to roll out the Neuberger Berman Overseas equity Investment No 4 Private Fund, according to records from the Asset Management Association of China (AMAC).
The QDLP scheme allows foreign managers to raise money in China from qualified investors (HNWIs and institutions), with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and property.
FSA sought more information from NB, but it declined to provide more details about its QDLP operations in China.
The firm rolled out its first QDLP strategy in 2018, while the second and third funds received AMAC approval in October and January, respectively.
Around 44 QDLP strategies managed by 32 foreign asset managers have been approved by the AMAC, according to records from the association.
Besides its QDLP business, the firm is also a private fund management (PFM) licence holder in China. A PFM licence enables foreign entities to develop and sell funds investing onshore assets to domestic qualified investors. In total, it manages seven PFM funds.
The firm also has plans of targeting China’s massive RMB 20.59trn ($3.17trn) public mutual fund industry. In April last year, the firm filed an application with the China Securities Regulatory Commission (CSRC) to set up a public mutual fund management company, which is still currently pending approval from the regulator.
