China’s CITIC Private Equity said to reach first close of $3b fund

Beijing, China

China’s CITIC Private Equity (CPE) aims to raise $3 billion in a new dollar-denominated fund and has reached a first-close of $1.8 billion, a person with direct knowledge told Reuters on Friday.

CPE is planning to complete the fundraising by year-end, said the person, who declined to be named as the information is confidential.

After the first-close, which happened a week ago according to the source, CPE can now start deploying capital from the new fund while investors can continue to commit funds to it.

Some of the firm’s existing investors, including Singaporean state investors GIC and Temasek, re-upped their commitments to the new fund, said the person.

CPE, which counts ride-hailing firm Didi Chuxing and JD Health International Inc in its portfolio, did not immediately respond to a query for comment.

Its fundraising comes as PE firms in Asia tap markets flush with liquidity due to authorities’ post-pandemic economic stimulus measures, while pension funds and other investors hunt better returns in a low interest rate environment.

Asia-focused funds raised $126 billion in 2020, down 39% year-on-year and nearly 50% less than the average of the previous five years, Preqin’s data showed.

The total is likely to rise this year as more funds are launched with market conditions also becoming favourable for PE firms to exit portfolio companies. As of last week, 108 new funds have raised $53 billion, Preqin said.

KKR & Co Inc earlier this month said it raised $15 billion for its fourth Asia-Pacific focused fund.

Hong Kong-based Baring Private Equity has also recently launched a new fund targeting $8.5 billion, according to separate people with direct knowledge. The firm declined to comment.

Founded in 2008, CPE was the investment arm of China’s top brokerage CITIC Securities but was spun off in 2018, when it raised a $2.3 billion dollar fund. It now has over 100 billion yuan ($15 billion) worth of assets under management, its website shows.

Reuters

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.