PE firms attracting more diverse strategies

The private equity market and PE companies are attracting more diversified investment strategies, according to a report by China Venture Group.

Besides funds such as CDH Investments and Hony Capital backed by the National Social Security Fund, commercial banks, securities firms, trust companies, insurance institutions also set up private equity funds, the report said.

Asset management companies are also playing a role in the PE sector after China Securities Regulatory Commission issued a rule in November.

PE companies are also allowed to expand their businesses to manage public-offering funds after the commission released a rule in February. Their previous businesses include equity investment in unlisted companies, private placement in the secondary market, and PIPE (private investment in public equity).

Experts said the expansion of public-offer funds is an opportunity for some PE firms, but more will focus on their previous businesses.

The pan-asset management market is huge and PE funds should think of clients' demands to win the market, they said.