Chinese early-stage venture funds are increasingly using parallel funds
structures to attract US investors while navigating compliance restrictions,
people familiar with the matter said. The setup allows US investors to gain
exposure to non-sensitive sectors while opting out of restricted industries.
ZhenFund, a Manus backer, has split its roughly $300 million fund into separate
vehicles for US and other investors. Luminous Ventures has adopted a similar
approach in a $460 million dollar fund closed this month. The structure is seen
as reducing reporting burdens and improving regulatory clarity for global
investors.
