Warburg Pincus is raising RMB 3 billion ($439 million) in its maiden yuan-denominated fund, two people with knowledge of the matter said, joining a growing list of private equity investors eyeing local currency investment opportunities in China, reports Reuters. China’s regulatory crackdown on private enterprises including in the tech sector, strict COVID-19 lockdowns and Sino-US tensions have made many US investors more cautious about deploying fresh capital in China in recent years, several investors and lawyers told Reuters.
Warburg has approached a number of Chinese investors including local government-backed entities and state-backed financial institutions for the new yuan fund, the people with knowledge of the matter said.
The US private equity firm plans to primarily focus on the healthcare and industrial technology sectors in China with the yuan fund, one of the people said.