China Private Equity, Venture Funds Seek More Time to Deploy Capital
- Many funds are struggling to find exits for portfolio firms
- Fund managers’ interests are diverging from their investors
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Venture capital and other private equity funds that raised money to invest in China during a tech boom a few years ago are increasingly facing a quandary. Some are running out of time to put investors’ cash to work, and the pickings have become slim.
A number of US dollar funds that focus on China are in negotiations to extend their investment periods, so that their managers can have more flexibility to deploy capital and find a better window for exits.