Hamilton Lane Inc., the $1 trillion private markets investor, plans to launch its first yuan-denominated fund targeting discounted Chinese assets, according to people familiar with the matter. The firm aims to raise $220 million for this new vehicle, marking its debut in fully local-currency investing in China.

The move represents a strategic expansion for Hamilton Lane, which has previously managed China exposure through offshore structures. Chinese markets have traded at significant discounts amid economic uncertainty, creating opportunities for foreign investors willing to navigate regulatory complexities. The fund will target undervalued assets across multiple sectors.

By establishing direct access to domestic Chinese markets, Hamilton Lane joins other international managers betting on a recovery in Chinese valuations. The firm seeks to diversify operations while leveraging local currency advantages for portfolio management and transactions.

The initiative reflects continued international interest in Chinese assets despite ongoing market challenges. Other major investors have shown similar appetite for discounted opportunities, suggesting this could mark the beginning of renewed foreign capital flows into the region.