Singapore’s Tembusu Partners setups Chinese funds worth US$149 million in Guizhou

Fri Mar 22, 2019 - 12:00am GMT+0000

Tembusu Partners

22/3/2019 – Tembusu Partners, a private equity investment firm based in Singapore announced on Thursday that it is launching several investment funds totalling 1 billion yuan (about US$149.7 million) in China’s Guizhou province.

This coincides with the Chinese central government’s recent efforts to liberalize the economy and promote innovation.

The event also comes after Tembusu was awarded the first Qualified Foreign Limited Partner (QFLP) status by the Chinese government, which will allow investors to enjoy an express lane for regulatory approval and taxation, without foreign currency convertibility issue.

This means investors can make multiple direct investments in Chinese companies more easily with a shortened transaction and investment process.

The funds will be used to invest in technology, infrastructure, healthcare, tourism, and impact-related projects in China. Through the funds, the portfolio companies under Tembusu partners will also become eligible for financial incentive schemes from the Chinese government.

Through the strategic 80:20 joint partnership with the Guizhou government, Tembusu also said it will receive the first-hand access to deal flow.

Since 2017, Tembusu has established an office in Guizhou’s provincial capital Guiyang in addition to its operations in Shanghai and is registered as a private equity fund manager with China’s Asset Management Association.

To further boost its Chinese investments, the PE firm also appointed former president and CEO of Singapore-based property developer CapitaLand, Lim Ming Yan as the chairman of Tembusu’s China Advisory Board.

“Tembusu is a well-regarded Singapore homegrown private equity specialist which has helped fund and nurture a number of emerging Asian companies. I hope to bring my experience and understanding of China to assist Tembusu in its China initiatives,” said Lim.

Andy Lim, Tembusu’s founder and chairman said, “the funds we intend to launch will enable Tembusu to bridge the investment communities of China, Southeast Asia and the rest of the world through accelerated deal flows. As China continues to open up and connect with the world, the fund will pave the way for more to participate starting from Guizhou.”

Founded in 2006, Tembusu holds a capital markets services license issued by the Monetary Authority of Singapore. The firm is a specialist in growth capital and mezzanine investments, its primary geographical markets are within emerging Asia including China, India, and Southeast Asia. Tembusu claims to have completed more than US$185 million worth of PE transactions.