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.