China-focused Welkin China Private Equity plans to launch an initial public offering (IPO) on the London Stock Exchange’s (LSEG) main market and is targeting a fundraise of up to $300 million.

It will be the first London-listed investment company focused on Chinese private equity and will target an annualised net asset value (NAV) total return of ‘at least 15%’ over the long term.

The trust will be managed by Welkin Capital Management (Asia), a growth investment outfit co-founded by financier Johnny Kong, and will offer risk-tolerant investors exposure to unquoted Chinese companies with long-term growth potential.

This asset class has traditionally been difficult for individual investors to access and Welkin believes this is an opportune time to launch given a ‘valuation reset’ in Chinese companies. The fund claims a ‘well-advanced pipeline of potential opportunities of up to $500 million’ in a Chinese private equity market estimated to be worth at least $1.8 trillion.

Chair Ivan Chu, the former CEO of Cathay Pacific, insisted the Welkin team has ‘deep local market expertise, a strong track-record, on-the-ground presence, and a good understanding of the Chinese business and policy environment.

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