New USD 1bn China fund seeks anchor investors

18 November 2019 - 12:00 am UTC

A JIDA Capital team that manages the CNY 3.69bn (USD 526m) CGN Capital Partners Infrastructure Fund III is looking to start a new USD 1bn investment vehicle focusing on China, according to a senior official.

The team has set up Albaman Capital Partners, which will launch Albaman Fund II, Raymond Fung, founding partner with JIDA Capital – General Partner of CGN Fund III — and founder of Albaman, told Inframation. The asset manager is currently seeking institutional investors as capital sponsors to anchor the vehicle.

The new fund will look to attract LPs that will grant the management team enough autonomy and independence, unlike in a captive fund focusing on complementing a corporate investor’s industrial strategy, Fung said. Its targets will include pension funds, sovereign wealth funds and insurance companies, he said.

“But no investment banks or industrial companies,” Fung said, adding that the fund will go out very soon.

Unlike CGN Fund III, which invests solely in renewables, Albaman Fund II will also be interested in data centre assets – either in data centre campuses or in the companies developing them. Power generation is an essential part of data centre development and operations, Fung said, adding that it is not only about telecommunication lines and the number of racks. It is also about the quality of electricity to power the data facilities, Fung said.

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