China’s CDH Investments said to raise $1b for fifth mezzanine fund

Photo: Bloomberg

Chinese fund manager CDH Investments has raised a sum of $1 billion for its China-focused fifth mezzanine fund, according to a report by Private Debt Investor.

The first close of the fund came late last year at $484 million, with backers including insurance companies, banks, trust companies and other institutional investors.

Once officially closed, the fund is expected to more than double the size of the previous mezzanine fund, which secured a total fund of $529 million in 2016 and focused on mergers and acquisitions. It will provide capital to growth-stage companies in education, healthcare, energy, and the consumer sectors.

CDH Investment Managing Director Ning Hu had told local media that CDH’s four mezzanine funds are all fully invested, and its first fund is fully exited, securing returns higher than the 11 per cent average for the market.

Launched in 2011, CDH Mezzanine and Credit provides financing for mergers & acquisitions, high growth private businesses, fixed assets investments and non-performing assets.  It offers investors a variety of creative structures, including convertible bonds, preferred debt, subordinated debt, buyback of shares and allocation of equity interests.

On its website, the company says its mezzanine fund manages more than $1.3 billion in assets across four RMB funds. Since its inception, CDH Mezzanine and Credit has reportedly invested in 58 projects and completed exits for 60 per cent of its investments, according to its website.

CDH Investments is an alternative investment fund managers focused on China with over $17 billion of assets under management, as of December 31, 2017.

Established in 2002, CDH has grown beyond its private equity root and become a diversified alternative asset management platform covering real assets, venture and growth capital, mezzanine & credit, public equities and wealth management.

In one of its latest moves, CDH is said to have made a $1.41 billion offer for Australia’s liver-cancer treatment specialist Sirtex Medical. The acquisition is conditional upon approval of Australia’s Foreign Investment Review Board.

Also Read:

China’s CDH Investments makes first close of mezzanine fund at $484m

Woori Bank to anchor Woori PE’s $280m SEA-focused debt fund: Report

China’s CDH Investments makes $1.4b offer for Australia’s Sirtex

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.