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Schroders ventures into private equity in China

Other offshore players that have a private equity business in China include Hong Kong-based Value Partners.

Schroder Adveq’s Shanghai-based wholly foreign-owned enterprise (WFOE) has received a private fund management (PFM) licence in China, according to records from the Asset Management Association of China (Amac).

A PFM licence allows foreign players to develop and sell onshore funds to domestic qualified investors, which include institutional and high net worth investors.

According to Amac records, the Schroder Adveq WFOE will manage private equity assets and venture capital in China.

FSA sought more information from Schroders, but it was not able to reply in time for publication.

The move comes after Schroders completed its acquisition of private equity firm Adveq in 2017. Schroder Adveq manages $10bn in private equity assets globally and has offices in Zurich, Frankfurt, London, Jersey, New York, Beijing and Hong Kong.

Other China businesses

Schroder Adveq’s PFM licence adds to other existing businesses of Schroders in China.

Schroders also has a PFM licence, which it obtained in 2017. To-date, it manages six onshore products, according to Amac records.

It also has a joint venture fund management firm with Bank of Communications, BOCOM Schroders.

Other offshore firms that have established a private equity business in China include Value Partners. So far, the Hong Kong-based firm has registered two private equity products in mainland China.

Separately, the usual six months limit for new PFM license holders to register a fund for launch has been extended to 12 months, due to the outbreak of coronavirus, according to a statement from Amac.

Part of the Mark Allen Group.