Remember Goldman Sachs “rainmaker” Fang Fenglei’s new private equity fund, Hopu? Singapore’s Temasek Holdings has a US$1 billion anchor stake in it, making up for about half the cash in the pool. Fang quit his post as top dog at Goldman’s China partnership to set up his own fund, presumably to leverage his well-documented connections to make some real money. Another Goldman alum, Richard Ong, also left the venerable firm to join Fang. The new fund was announced in January, but it has been pretty quiet since then.
Last week, though, Daiwa Securities announced that it would put US$100 million in Fang’s care. It’s actually an 80/20 split between Daiwa Securities and a joint venture it has with Sumitomo Mitsui Financial Group. This Reuters story sheds some light on Hopu’s previously undisclosed strategy: It plans to take stakes in high-growth unlisted firms or state-owned enterprises. Given current market conditions, it will be educational to see Fang work his golden touch on his investments.