Money

Legend aims to raise two funds totaling $500m

(Agencies)
Updated: 2010-12-06 17:19

Legend Capital, the venture capital unit of Legend Holdings, plans to raise at least 1 billion yuan ($150 million) in a yuan-denominated fund and $350 million in a US dollar fund in the first half of next year, Reuters reported on Dec 6, citing a senior executive.

The planned new funds will invest in sectors that will benefit from government support, such as telecommunications, media and technology, green energy, consumer-related services and pharmaceuticals, Managing Director Ouyang Xiangyu told Reuters in an interview.

Legend Capital currently manages a 1 billion yuan local-currency fund as well as four dollar funds totaling $700 million, in which the fourth one is the largest, with $350 million in size.

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Ouyang said that the planned funds for next year will be bigger than previous ones, without giving specific forecasts.

Legend Capital and its sibling firm Hony Capital compete with global buyout firms including Blackstone and the Carlyle Group for capital and investment opportunities in China's booming private equity market.

China is encouraging private equity investment to channel more savings into the private sector to bolster growth and innovation as the country seeks to cut reliance on exports and government-backed investment.

Legend Capital was established in 2001 and had invested in 15 companies before they went public. They include Sinocom Soft, AH USTC Iflytek and Sunshine Paper.

Its parent Legend Holdings also owns Lenovo Group Ltd, the world's No 4 PC brand.