GPs challenged by Luckin fallout, US-China tensions

Already hit hard by Covid-19, China-focused private equity strategies are facing rapidly worsening conditions to raise funds as Sino-US tensions ratchet up to new levels and a case of fraud at private equity-backed Chinese company Luckin Coffee undermines investor confidence. Some private equity fund managers, also known as general partners, are looking at cutting their fees to attract more investors. But such efforts are seen as unlikely to sufficiently offset growing investor co…