Shanghai's Lin-gang Special Area has recently marked another significant milestone in its journey to become more financially open with the official establishment of global asset management giant KKR's first onshore renminbi fund.

Ring of Glory, a landmark in Lin-gang's Dishui Lake Financial Bay. [Photo/WeChat ID: shlgguanweihui]

KKR, founded in 1976, is a leading global investment firm specializing in alternative asset management and providing capital market and insurance solutions.

With an impressive $686 billion in assets under management as of June 30, KKR has solidified its position as an industry leader, topping the 2024 PEI 300 list — which ranks the largest private equity firms globally based on the amount of direct private equity capital raised over a five-year period — with a staggering $117.9 billion raised over the past five years.

The newly established fund, registered under Kaide Shipu (Shanghai) Private Investment Fund Partnership (Limited Partnership), has successfully completed its filing with the Asset Management Association of China.

Boasting an initial size of approximately 400 million yuan ($55.78 million), the fund's limited partner (LP) lineup is a blend of domestic and international powerhouses, including Ping An Capital, Singapore-based TPC Group, and Schroders.

KKR's foray into the RMB fund space in Lin-gang underscores its commitment to the Chinese market and highlights Lin-gang's appeal as a frontier for financial innovation. With advantages in institutional openness and preferential policies, Lin-gang is becoming a hub for foreign-funded institutions to engage in China's capital market and promote their localization strategy.

This move is set to facilitate matchmaking between global capital and China's economic and industrial upgrading needs, fostering a win-win scenario for both Chinese and international investors.