The private equity arm of banking group Lloyds has invested US$30 million (£21 million) in a fund backing Chinese growth companies.

The private equity arm of banking group Lloyds has invested US$30 million (£21 million) in a fund backing Chinese growth companies.

China New Enterprise Investment Fund II, which has more than $250 million under management, is registered in Beijing and denominated in Chinese yuan, unlike many other investment vehicles focused on the region which are domiciled in offshore tax havens.

It is being managed by New Enterprise Management, whose principal partners are Xiaoyang Yu, Johannes Schoeter and Hirosuke Sakai. Each of the trio has more than 25 years’ experience doing business in China and they are described by Lloyds as ‘pioneers of financial investment in the People’s Republic’.

Craig Wilkinson, Hong Kong managing director of Lloyds Development Capital, says, ‘Their innovative fund structure, culture and investment approach will allow us to take a significant step forward in the development of LDC’s Asian operations.’

The fund’s predecessor, China New Investment Enterprise Fund I, raised $100 million.