Texas Hold ’Em Gives Way to ‘Throwing Eggs’ as China’s PE Funds Woo Yuan Investors

As Chinese companies’ overseas listings have almost dried up over the past two years, China’s private equity (PE) and venture capital (VC) firms have been forced to turn away from foreign investors with U.S. dollar funding and start courting domestic investors with yuan funding. The transition has been, for many, a cultural shock.

Multiple PE/VC fund industry sources told Caixin that because fewer Chinese companies are listing overseas, overseas investors with U.S. dollar-denominated funds aren’t able to exit their investments, making them even more reluctant to commit new money. Geopolitical tensions between China and the West have also made it more challenging for Chinese funds to raise dollars, they said.