New Horizon Capital to set up $1 billion private equity fund

New Horizon Capital, a private equity company co-founded by Wen Yunsong, the son of Chinese Premier Wen Jiabao, is looking to raise US$1 billion for a fund targeting domestic companies, Reuters reported. The fund, which would focus on companies ready to make intitial public offerings, would be the third and largest fund established by New Horizon Capital, according to sources familiar with the situation. The private equity company had about US$500 million under management since it was set up in 2007. Between US$600 million and US$700 million was raised during the “first-closing” period, with capital commitments coming from the likes of Japan’s Softbank Corp and Temasek Holdings, the Singaporean state-owned investment company.