<article>CITIC Private Equity Funds Management is set to hit the first close at $1.4 billion for its latest fund, where it plans to raise $2 billion. The final close is expected to happen in Summer.</article>

CITIC Private Equity Funds Management is set to hit the first close at $1.4 billion for its latest fund, where it plans to raise $2 billion. The final close is expected to happen in Summer.
According to PE International, CITIC PE had begun raising capital for its latest vehicle &#8211; CPE China Fund III &#8211; that has a hardcap of $2.2 billion in December, and the report also added that the new fund is about 50 per cent larger than its predecessor, that had hit a final close in 2015, after raising $1.3 billion. The report further cited a source as stating that all existing Limited Partners (LPs) that included sovereign wealth funds, pension funds, companies, university endowments and financial institutions, were all keen to participate in the new vehicle.
Last year, the CITIC management had <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/china-primavera-citic-pe-dollar-funds-5billion-84816/">confirmed plans for the new fund to Reuters</a>, and added that it had significantly oversubscribed and that the company was targeting a final close in the first half of 2018.
CITIC PE, that was founded in 2008, and has invested in over 100 countries so far, had earlier said the new vehicle would be used to pursue growth and buyout opportunities across five core sectors &#8211; technology and internet, industrial and energy, financial and business services, consumer and leisure, and healthcare. The PE firm has over $15 billion worth of assets under management.
It may be interesting to note that larger part of CITIC PE investors or LPs &#8212; over 55 per cent &#8212; are wealth funds and pensions, as of June 2017, based on data provided by CITIC PE. Meanwhile, financial Institutions as LPs form 18 per cent of total investors and High Net worths are 8 per cent. About 9 per cent of the investors are corporations and 4 per cent are fund of funds. The greatest chunk of its investors come from North America (49 per cent), China (24 per cent) and Asia Pacific (21 per cent).
With over $15 billion worth of assets under management, the Shanghai-based firm has a focus mainly on companies with some form of government ownership or involvement. In the past, the firm has raised three China funds &#8212; CITIC Capital China Partners ( 2007) , CITIC Capital China Partners II (2010) and CITIC Capital RMB Multi-Asset Class Fund – Buyout Strategy (2014).
The vast majority of its assets under management comes from institutional investors in North America, Europe, Asia and the Middle East while less than 10 per cent comes from our existing shareholders and management.
CITIC PE&#8217;s latest vehicle joins a slew of Chinese PE firms that have either raised or announced their fund in the recent period. PE firm Hopu Investments, in December, was learnt to be raising up to $2.5 billion in a new dollar fund for China. In January, the country&#8217;s healthcare-focused PE firm C-Bridge Capital was known to be raising its third healthcare-focused fund with a target corpus of $650 million, only six months after closing its previous fund.
Previously, in 2016, Hong Kong-based FountainVest Partners closed the fundraising for its third vehicle, FountainVest China Capital Partners Fund III, with a total size of $2.1 billion while Hony Capital raised $2.7 billion for a dual-currency fund to target overseas and China-based investors.
In fact, it is not just PE&#8217;s but many Venture Capital firms in China are also in seen to be active in the fundraising spectrum. Recently, VC arm of insurer Ping An, was reported to be raising up to $1.3 billion in two healthcare-focused funds that will seek growth-stage and pre-IPO investments. Last year, Beyond Ventures, a venture capital fund backed by PE firm Hony Capital, is raising $154 million to invest in early-stage technology startups in Hong Kong.
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<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-ping-ventures-1-3-bn-healthcare-investments-91969/">China’s Ping An Ventures said to be raising up to $1.3b for healthcare funds</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-healthcare-focused-pe-cbridge-raising-650m-third-fund-91320/">China’s healthcare-focused PE firm C-Bridge raising $650m third fund: Report</a>

CITIC Private Equity of China is set to hit the first close at $1.4 billion for its latest fund, where it plans to raise $2 billion. 

CITIC PE nears $1.4b first close for latest fund

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CITIC PE nears $1.4b first close for latest fund

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