China’s Principle Capital may land $30m IFC investment for its new $350m PE fund

An advertising board (L) showing a Chinese stone lion is pictured near an entrance to the headquarters (R) of China Securities Regulatory Commission (CSRC), in Beijing, China, in this September 7, 2015 file photo. REUTERS/Jason Lee/Files

International Finance Corporation (IFC), the private lending arm of the World Bank, is looking at investing up to $30-million into China-focussed private equity fund Principle Capital Fund IV L.P.

The move marks IFC’s third such equity commitment in China’s private equity space in less than two months.

The mid-market focussed Principle Capital Advisors Ltd is on the road to raise a $350-million fresh fund targeting investments in fast-growing enterprises located in cities around eastern seaboard of China, such as Shanghai. It is a 10-year, close-ended generalist PE fund.

IFC says, in its filing, its investment will play a catalytic role in attracting additional investors into the fund and allow it reach its target size.

The Shanghai-based fund has over $350 million assets under management across four collective investment vehicles.

Principle Capital, which was set up 2002, focusses on enterprises that have a potential to be business leaders. The firm invests through controlling ownership or strategic minority positions in portfolio companies.

As a strategic investor, Principle provides management support to portfolio companies, according to information from its website.

Some of its portfolio investments include Amicogen Biomedical China, iService Holding Group, Jiangsu Tie Mao Glass Co, independent third party B2B online travel platform lvyouquan, Shanghai Genchem, Zhejiang Hisoar Pharmaceutical, Lier Chemical, among others.

The World Bank arm has, in recent weeks, proposed an aggregate equity investment of $40 million into two China-focussed funds.

IFC is likely to make an equity investment of up to $25 million in a new fund, SBCVC Fund V, L.P., that is raising $400 million, targeting investments in high-tech, high growth companies in TMT, clean technology, healthcare, consumer/retail, and advanced manufacturing sectors.

It also announced its commitment of injecting $15 million in China-focussed fund, Sinovation Fund III LP, headed by technology sector veteran Dr Kai Fu Lee. Sinovation Fund III L.P, a venture capital fund targeting early stage TMT companies in China, has a target size of $250 million.

Also Read:

IFC may inject $15m in China’s Sinovation Fund

IFC to invest $25m in China-focused SBCVC’s $475 m fresh fund

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.