Citadel, a multi-strategy hedge fund manager, has concluded a Yuan fundraising under Qualified Domestic Limited Partner (QDLP) Program, becoming the first international fund to raise money from wealthy Chinese individuals.
The QDLP program was initiated by the China’s foreign-exchange regulator in March 2012 authorizing a total of six hedge fund managers to each raise not more than $50 million in Yuan, introducing the foreign investment opportunities for high-net-worth individuals in the country through hedge funds.
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Citadel was authorized to tap Chinese investors earlier in September 2013, before securing regulatory approval of converting Yuan to US dollars for investing in March 2014.
However, the approved hedge fund managers can only raise money from wealthy individuals, but not from Chinese institutional investors including insurers.
Other companies that qualified under the first batch of the program are Oaktree Capital Management, Och-Ziff Capital Management Group, Winton Capital Management, Man Group, and Canyan Partners.
According to the People’s Bank of China’s data, China had nearly CNY108.5 trillion ($17trillion) of local-currency deposits at the end of April 2014, which can be a potential fundraising market for the global asset managers.
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By GlobalData
