Funds of funds find themselves favorites

As fundraising becomes more difficult in the Chinese venture capital and private equity markets and the demands on limited partners are made stricter, developing a fund of funds is becoming increasingly popular in China among investors.

A fund of funds in VC and PE markets involves putting money into several equity investment funds with excellent records rather than a single one.

Beijing Flourish Libra Venture Capital Co Ltd finished its first round financing of 130 million yuan ($20.56 million) in its Flourish Libra FOF III in May. The FOF put cash into Fosun Grand Fund, a PE fund focusing on consumption, technology and industrial upgrades of the Chinese private conglomerate Fosun Group