BEIJING, Nov. 23, 2017 /PRNewswire/ —
Flagship investment funds to focus on larger deals, and lead or co-lead the majority of deals New investment capabilities in healthcare and mezzanine debt added to business $10 billion in total AUM targeted by 2020 with growing investor base and new products
China Renaissance today unveiled an expanded asset management business with an array of strategies and approaches to investing in companies across high-growth sectors of China’s economy. The business will offer a range of options for investors who want exposure to “new economy” entrepreneurs, those with progressive business models built around innovations in technology, media, and entertainment (TME) as well as healthcare and life sciences.
China Renaissance has built its asset management business around its longstanding focus on TME companies. Its proprietary investments in China’s most prominent TME firms have formed the basis for developing an independent fund management business that is run as a distinct operating unit on behalf of limited partner investors. Current investors include funds of funds, family offices, financial institutions, corporations, and high-net-worth individuals, mostly from China.
Additionally, China Renaissance has established separate investment teams to focus on innovations in China’s healthcare sector and opportunities in mezzanine securities issued by new economy companies.
Each part of the business has its own investment committee, portfolio managers, and research teams. This approach allows them to stay ahead of industry trends, understand the factors affecting the business and valuations of their portfolio companies, and make the most informed investment and exit decisions.
Total assets under management is today over $3 billion across USD and RMB funds. The firm aims to reach $10 billion in total AUM by 2020 as it grows its investor base internationally and adds asset classes and investment strategies, including hedge funds, to its platform. The 2020 AUM target anticipates 30-40% of capital coming from investors outside China, including sovereign wealth funds, hedge funds, and asset managers in North America, the Middle East, and the broader Asia region.
“The asset management business has grown naturally from our proprietary investing and our focus on supporting entrepreneurs contributing new sources of economic growth in China,” said Fan Bao, Chairman and Chief Executive Officer of China Renaissance. “The maturation of China’s market — with disruption in both consumer and business-to-business verticals, abundant capital, and the vast scale at which innovations come to market — has created unique opportunities and challenges