SINGAPORE (Mar 21): Singapore-based private equity firm Tembusu Partners announced it will be launching several investment funds totalling about RMB 1.0 billion ($205.6 million) after securing the first Qualified Foreign Limited Partner (QFLP) status awarded to a foreign fund management firm in China’s Guizhou Province.
Meanwhile, the firm also announced that Lim Ming Yan, former CEO of Capitaland, will be appointed as chairman of its China Advisory Board as Tembusu seeks to increase its investments in China. This is a part of the central government’s efforts to liberalise the economy and promote innovation.
Tembusu entered into an 80-20 joint venture with a Guizhou state-owned entity and is the first in the southwestern province to obtain the QFLP license.
The state-owned entity allows investors to enjoy an ‘express lane’ for regulatory approval and taxation, without the issue of foreign currency convertibility. By shortening transaction time and investment process, foreigners can make multiple direct investments in Chinese companies more easily.
The funds that Tembusu launches will mainly invest in technology, infrastructure, healthcare, tourism and impact related projects in China. Through the funds, investee companies will also be eligible for financial incentive schemes from the Chinese government.
Through a strategic partnership with the Guizhou government, Tembusu will receive first-hand access to deal flow.
Andy Lim, founder and chairman of Tembusu, says, “The funds we intend to launch will enable Tembusu to bridge the investment communities of China, Southeast Asia and the rest of the world through accelerated deal flows. As China continues to open up and connect with the world, the funds will pave the way for more to participate starting from Guizhou. I am honoured that Ming Yan has agreed to spearhead our China Advisory Board and am confident that he will open up new opportunities as we seek to participate in the growth of some of China’s most promising companies.”
Lim says, “I am delighted to join Tembusu’s China Advisory Board. Tembusu is a well-regarded Singapore homegrown private equity specialist which has helped fund and nurture a number of emerging Asian companies. I hope to bring my experience and understanding of China to assist Tembusu in its China initiatives.”
