The announcement came after The
Shanghai competes with other Chinese cities including Tianjin and Beijing in attracting foreign private equity investment as it seeks to foster corporate governance and steps up efforts to become an international financial hub by 2020.
“Capital supply from U.S. dollar investors is shrinking, while in China, there has been increasing demand for managers of yuan funds due to ample liquidity,” says Alex Wang, Shanghai-based partner at U.S. law firm Paul Hastings Janofsky & Walker.
China in June lifted a nine-month ban on IPOs and will this year launch a Nasdaq-style second board, expanding exit channels for private equity and venture capital investors in a stock market that has jumped more than 60% this year.
“Through our local expertise and our expanding global network, I am confident we can add substantial value to aspiring Chinese companies both in China and on international markets,” says Victor Chu, chairman of First Eastern.
First Eastern, founded by Chu two decades ago, has invested in more than 100 ventures in China covering infrastructure projects, light industries, real estate development and financial services.
The firm said it has already been in discussion with local governments on cooperative projects that would benefit from China’s 4 trillion yuan economic stimulus package. —Reuters
Arlington Capital holds first close on third fund
Credit Suisse is the firm’s placement agent even though Arlington used UBS for its second fund, a $585 million pool. Apparently UBS told the firm that the leap from $585 million to $750 million was too steep given the environment. Likewise, the firm’s main contact at UBS, Mark Bourgeois, left UBS to go to Lehman Brothers in March 2008.
Arlington, based in Washington, D.C., was founded by Jeffrey Freed and Robert Knibb in 1999. —Erin Griffith
Rockland raises $94.5M
Veritas seeks $1.25B
UBS Securities is serving as placement agent.
Veritas raised about $300 million for its third fund in 2005, and invests in “middle market companies that provide goods and services to a broad array of government-related customers.”
Canter Equity forms