Authored by: Dong Gang(Tony), Yu Yue (Jessie)
Since its initial launch in Shanghai in 2010, the Qualified Foreign Limited Partner (“QFLP”) regime has been one of the key routes for foreign investors to deploy capital into China’s onshore private equity and venture capital markets.
Under a typical QFLP structure, the QFLP Fund is managed by a domestic fund manager, with the foreign investor or the QFLP investing foreign currencies. Such foreign currency investment would be converted into RMB following the applicable foreign exchange rules. The QFLP Fund may also raise money from the domestic limited partners.