Venture capital funds are selling their rights to invest in some of China’s hottest start-ups, resulting in a hodgepodge of fee structures for later-stage investors.
It's a trend that has evolved in recent years in China, according to Kelvin Yap, managing director at HarbourVest Partners, a global fund-of-funds firm.
“It’s rampant here in Asia,” he told an industry conference on Monday.
HarbourVest has about $50 billion under management, operating across private equity fund investments, secondaries as well as about $10 billion in co-investments.
Venture capital firms are investors that typically get involved in the very...