China’s CDH Investments sub-fund raises $310m for data centre vehicle

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Chinese alternative assets manager CDH Investments sub-fund CDH Mezzanine and Credit Fund has raised 2 billion yuan ($310 million) for its first industry data centre (IDC) fund, per a company statement on Tuesday. 

The fund, which was initiated in April last year, marks China’s first yuan fund aimed at the data centre industry. CDH Mezzanine and Credit Fund had secured the first close of the fund at 1.5 billion yuan ($228 million) in November last year. 

The capital commitments were primarily secured from China Pacific Insurance and Taikang Insurance. A batch of endowment funds and private-owned conglomerates also invested in the fund. 

CDH earlier disclosed that the debut IDC fund will be used to forge partnerships with China’s leading data services providers, as well as to invest in novel projects across cities. 

The fund comes at a time when the Chinese government had in 2020 proposed a five-year plan to facilitate 5G networks, AI, industrial internet, data centers, among others. As of 2020, China’s market size for data centres amounted to 224 billion yuan ($35 billion), a 43.3% year-on-year growth. 

CDH Mezzanine and Credit Fund made a foray into the data centre industry in 2017. Now it has poured over 3 billion yuan ($465 million) into the field and successfully made three exits. 

According to the statement, CDH Mezzanine and Credit Fund has over 10 projects in the pipeline including self-owned and buyout assets. Meanwhile, it will also consider launching a second IDC fund. 

CDH Mezzanine and Credit Fund, set up in 2011, manages nearly 16 billion yuan ($2.48 billion) in assets and three sub-funds. With focus on provide financial supports for mergers & acquisitions, high-growth private businesses, fixed assets investments and non-performing assets, its sum of investments amounted to 30 billion yuan ($4.6 billion). 

It has closed its fifth RMB fund at 8 billion yuan ($1.2 billion) in April last year, and it has recently launched the sixth 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.