China’s CDH Investments secures first close of data centre fund at $228m

Visual of a data centre. Credit: Flickr/Sean Ellis

Chinese alternative assets manager CDH Investments’ sub-fund, the CDH Mezzanine and Credit Fund, has secured the first close of its industry data centre (IDC) fund at 1.5 billion yuan ($228 million), CDH announced on Monday. 

The full target size of the RMB-denominated fund is 2 billion yuan ($304 million) and its investors so far include insurance groups, university endowment funds, and state-owned organisations. The IDC fund is the maiden RMB fund in the data centre industry.

Going forward, the fund will target to forge partnerships with China’s leading data services providers, as well as invest in novel projects across cities.

Beijing-based CDH set up CDH Mezzanine and Credit Fund in 2011, to offer financing for mergers & acquisitions, high growth private businesses, fixed assets investments and non-performing assets. As of April this year, it has over 22.7 billion yuan ($3.5 billion) in assets under management and has invested in 92 companies.

The Mezzanine and Credit Fund has launched five RMB funds and one dollar-denominated fund. It has fully exited from the first two RMB funds with return rate to its investors amounting to 15.1 per cent and 11.5 per cent, respectively.

The latest fifth fund attracted a string of marquee investors including funds of funds, government-backed funds, industry funds, and pension funds.

Before launching the IDC fund, The Mezzanine and Credit Fund has made nearly 1 billion yuan ($1.5 billion) investment in the data industry, and, according to CDH, it has about 10 projects in the pipeline and has made a foray into the overseas market as well. 

“Data centres have become an indispensable asset and infrastructure in the era of information technology, which is one of the primary reasons for us to further support,” said Tao Ye, the general manager at Mezzanine and Credit Fund, in the statement. 

China’s data centre market was estimated at about 156 billion yuan ($24 billion) in 2019, and is projected to surpass 200 billion yuan ($30 billion) by end-2020. 

Singapore Reporter/s

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

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  • 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. 
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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.