Wellington Global Private Fund Management (Shanghai), a subsidiary of Wellington Management, announced it has received approval to register as a Qualified Domestic Limited Partner (QDLP) private fund manager.
“We are excited to obtain a QDLP license, which marks a critical milestone in our business development and expansion in China,” said Scott Geary, senior managing director and head of client group for Asia Pacific at the firm.
The QDLP scheme allows managers to raise money in China with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and real estate.
With the new license, Geary told FSA that it aims to bring its global investment and research capabilities across equity, fixed income, multi-asset, sustainable investing and alternative funds to qualified investors in mainland China.
The firm’s QDLP products and quota status will be updated in due course, Geary added.
Fund quotas are allocated through a few major cities, including Beijing, Shanghai, Shenzhen and Chongqing.
Qualified investors, including institutional and high net worth investors, are allowed to invest in QDLP products, according to the authorities.
Wellington has been serving institutional clients in mainland China since 2007, including insurance companies, asset management firms and private banks.
The US asset manager believes that with rising affluence and increased maturity of financial management in the mainland, demand from domestic investors for more exposure to global assets is growing.
As of end of March 2021, Wellington had more than $1.3trn in AUM with a presence in over 60 markets.
Since the launch of the QDLP scheme in 2013, about 50 global asset managers have received QDLP licenses in Shanghai, including Blackrock, UBS, and Pictet, according to the Shanghai Municipal Financial Regulatory Bureau. Earlier this year, Barings became one of the latest QDLP managers to launch a fund in China