Chinese private equity firm DT Capital Partners has hit the final close of a new fund at 2 billion yuan ($285 million), gearing up investments against the backdrop of a clouded domestic economic environment in China.
The new fund, which will primarily invest in the TMT, healthcare and high-end manufacturing industries, received capital from government-linked investment companies including State Development & Investment Corporation (SDIC), the largest state-owned investment company in China, according to a statement on Wednesday.
Chinese government-backed venture capital platform Oriza FOFs, Qianhai FOF, a 21.5-billion-yuan ($3.07 billion) vehicle jointly managed by state-backed Shenzhen Capital Group, state-own investment firm Shanghai Qingpu Investment, and a few other local government-led funds of funds (FOFs) also poured money into the investment vehicle.
The fund was closed against the headwind of a gloomy fundraising environment in China. Chinese private equity companies raised an aggregate of 211.93 billion yuan ($30.25 billion) across 541 funds in the third quarter of 2019, down nearly one fifth in terms of both fund number and fund size compared to one year earlier, according to statistics compiled by Zero2IPO Group.
“Faced with the capital winter, we need to go upstream despite difficulties,” said Shao Jun, founding partner and chairman of DT Capital Partners, in the statement. There are usually “overcapitalization and investment bubbles” when fundraising is easy in the market. In comparison, the capital winter could be “a great time” for making investments, he said.
Upon the completion of the fund, DT Capital Partners manages multiple funds with over 10 billion yuan ($1.43 billion) in total assets under management (AUM). The company, started in 2000 and based in Shanghai, has so far made investments in more than 300 enterprises across industries including energy conservation and environment protection, advanced manufacturing, consumption, information technology, and healthcare.
DT Capital Partners previously backed Chinese mobile internet platform operator 91.com, Shenzhen-listed printing technology developer Amsky Technology, Bainian Liyuan, which produces and sells organic food in China, Shanghai-listed pharmaceutical firm Buchang Pharma, as well as automotive sales and aftersales services provider China Grand Automotive.