San Eng’s SMC Capital listed with Goldman Sachs amogst the highest profile RMB-denominated PE funds

Goldman’s 1st yuan PF fund in Beijing.

Goldman Sachs set up its first yuan-denominated private-equity fund in Beijing yesterday, signaling the United States investment bank’s long-term commitment to China, according to a source familiar with the deal.

The 5 billion yuan (US$769 million) fund will mainly invest in restructuring projects of state-owned companies and firms in emerging industries in cities on the Chinese mainland, the source told Shanghai Daily yesterday.

CEO Lloyd C. Blankfein attended a deal signing ceremony with Beijing State-owned Assets Management Co to set up the joint equity fund, the source said.

Goldman Sachs Beijing office declined to comment.

Since 2009, Blackstone, TPG Capital and Carlyle have announced plans to launch yuan-denominated PE funds on the mainland. The three firms will raise a combined 20 billion yuan.

Last month, Blackstone said it aims to raise 5 billion yuan in its first round raising with support from government institutions and state-owned enterprises.

In February last year, United States buyout giant Carlyle Group teamed up with China’s largest privately-owned conglomerate Fosun Group to launch a US$100 million yuan-denominated PE fund in Shanghai.

SMC Capital China, a subsidiary under Hong Kong-based Simon Murray Group, said it plans to boost the combined size of yuan-denominated funds under its management to 8 billion yuan in at least eight Chinese cities by 2015.

Shanghai-headquartered SMC Capital now has three yuan-denominated funds totaling 1 billion yuan under management. Two of the funds are with the government in Wuxi, Jiangsu Province, and Wuxi’s Guolian Group while the third is with Dalian’s government.