Chinese private equity firm drops ties with princeling
Nepoch Capital distances from its co-founder and son of former party discipline chief after questioning linked to corruption probe
Mainland private equity firm Nepoch Capital has erased its princeling backer He Jintao from the documents it shows investors after he was questioned in connection with a corruption investigation, sources have said.
Nepoch's distancing from its co-founder, son of former Communist Party discipline chief He Guoqiang, was a direct result of his being questioned in May, said an investor in the fund.
A source close to He Jintao said the case was linked to investigations into Song Lin, the former chairman of state-run conglomerate China Resources, which has been accused of overpaying for assets.
There has been no indication that He has been or will be charged with any offence, although he was placed under house arrest in May.
A source from an international bank that is considering an investment in a dairy farm with Nepoch said underwriters for that deal had shown it legal documents to prove He was no longer involved with the firm.
The source said the bank's own internal due diligence procedures would otherwise have barred it from investing alongside Nepoch.
Nepoch did not respond to requests for comment.