Eighteen months after the completion of its debut private equity fund at about $2 billion, Asia-focused DCP Capital is again in the market to raise its second US dollar PE fund, DCP Capital Partners II, according to a filing with the US Securities and Exchange Commission (SEC)
The fund size of DCP Capital Partners II, however, was not disclosed. The firm did not immediately reply to DealStreetAsia’s requests for comments.
The filing shows that DCP Capital is estimated to pay a finder’s fee of $2 million to New York-based investment banking advisory firm Evercore Group. A finder’s fee, also known as a referral fee, is a commission paid to an intermediary or a facilitator who bridges the fundraiser with potential limited partners, or LPs.
In July 2020, DCP Capital Partners II received a capital commitment of up to $200 million from The New York State Teachers’ Retirement System (NYSTRS), one of the largest public pension funds in the US. The pension fund’s executive director had approved the commitment in May, NYSTRS disclosed during its investment committee meeting.
The development came after DCP Capital had reached the final closing of its maiden Greater China-focused US dollar fund, DCP Capital Partners I, at around $2 billion in April 2019. Including a concurrently raised RMB-denominated fund, the total capital commitments had reached about $2.5 billion.
The predecessor fund primarily invests in sectors that “benefit from domestic consumption upgrades and industry consolidation” in Greater China, the firm said in a statement.
The sectors include consumer, industrial technology, healthcare, agriculture/food safety, business services, financial services, and TMT. Its investment strategy covers both traditional buyout transactions and significant minority opportunities.
DCP Capital was created by former executives of KKR & Co and Morgan Stanley’s PE team in Asia. Since their Greater China journey started in 1993, the investment team had led transactions into Chinese insurer Ping An Insurance, dairy products producer Mengniu Dairy, home appliance firm Haier Electronics, financial services company Far East Horizon, women’s shoe retailer Belle International, and Venus Medtech, which develops transcatheter heart valve medical devices, among others.
The firm had inked an agreement with Venus Medtech and Chinese VC major Qiming Venture Partners in July to launch a healthcare investment platform, Ascendum Capital Partners. The platform focuses on investments in innovative medical device companies in the global cardiovascular and lung disease treatment space.