Asia-focused DCP Capital in market to raise second PE fund

Beijing, China. Photo: Raj Eiamworakul/ Unsplash

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.

 

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.