CDH Investments is seeking to raise up to $2 billion for its next flagship buyout fund targeted at investments in China.
The Chinese private equity firm is in talks with investors to raise its sixth US dollar-denominated fund that will focus on control deals that incorporate debt, the Wall Street Journal reported. CDH’s new strategy for the fund is seen as unusual in China’s PE market that remains dominated by growth-equity and minority investments.
Established in 2002, CDH Investment manages over $16 billion in assets across private equity, venture capital, real assets, mezzanine and credit, public equities and wealth management. It has offices in Hong Kong, Singapore, Beijing, Shanghai, Shenzhen and Jakarta.
The company’s previous $2.5-billion Fund V raised in 2014 received commitments from US-based limited partners such as Texas County, and District Retirement System. Its Fund IV that closed at $1.4 billion saw backing from the Canada Pension Plan Investment Board (CPPIB), according to Dow Jones & Company.
Only last July, CDH led a $44-million (RMB300 million) Series B round in Shanghai-based logistics services platform Yimidida. Prior to that, it completed its local mid-market fund at a maximum level of $800 million in total commitments in January.
Some of the recent funding rounds that CDH has been part of include a $120-million round in Chinese deep learning startup SenseTime, $100-million round raised by humanoid robots maker Ubtech, a $360-million Series A round in Hive Box, and an undisclosed investment in Chinese co-working space startup Fountown.