Exclusive: CDH Investments mops up over $1b for sixth China fund

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Buyout firm CDH Investments has mopped up over $1 billion in commitments for its sixth China fund that aims to make investments in consumer, healthcare, financial services and other growth sectors.

The fund, which has a hard cap of $2.5 billion, is expected to make a final close by the second quarter next year, an industry source aware of the development told this portal. It was launched late last year.

CDH, one of China’s oldest PE firms, is likely to make its first investment from its latest vehicle before the end of this year, the source said.

Established in 2002, the Chinese firm had closed its last flagship PE fund at $2.5 billion in 2014 with the backing of limited partners including Texas County and District Retirement System, according to Dow Jones & Company. The fifth fund is learnt to be 90 per cent drawn already and will make its last few investments by the end of the year.

CDH, also known as the ‘KKR of China’, had spun out from China International Capital Corporation in its early days. It focuses on mainland companies and largely invests in non-tech businesses. Apart from private equity, it runs mezzanine, real estate, public equities and wealth management arms. Its portfolio includes more than 200 companies, of which more than 50 have gone on to conduct initial public offerings on domestic and international stock exchanges.

In May this year, the firm raised $1 billion for its China-focused fifth mezzanine fund. Currently, with cumulative assets under management in excess of $10.5 billion, CDH has invested in sectors such as retail and consumer products, agriculture, industrial manufacturing and health care. In fact, the firm has invested over a billion dollars in the healthcare sector over the years.

Following a strategy which builds on the booming Chinese economy, the firm continues to scout for investments outside China as well.

It recently acquired Australian medical device maker Sirtex for $1.4 billion. Other current and past portfolio companies include Chinese artificial intelligence (AI) unicorn SenseTime, humanoid robots maker Ubtech, delivery startup Hive Box, and Chinese co-working space startup Fountown (later acquired by Ucommune).

Private equity funds focused on Asia have been ballooning in size. Hong Kong-based PAG announced on Monday that it had closed a $6-billion Asia fund while Hillhouse Capital recently eclipsed KKR’s $9.3-billion fund by gathering $10.6 billion in Asia’s largest-ever capital raise.

Earlier this month, it was reported that global private equity firm Bain Capital LLC is expecting to hold a first and final close for its $3.5-billion Asia-focused fund in December.

Also Read:

HK-based PAG gathers $6b for third Asia buyout fund

China’s Hillhouse raises $10.6b for Asia’s largest private equity fund

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