DCP Capital raises $2.5b for first China-focused funds

A 100 yuan banknote (R) is placed next to a $100 banknote in this picture illustration taken in Beijing November 7, 2010. REUTERS/Petar Kujundzic

DCP Capital, co-founded by former KKR & Co Greater China head David Liu, said it has raised about $2.5 billion in its debut U.S. dollar and yuan funds, giving the private equity firm adequate firepower to invest in Greater China.

The funds add to a massive pool of money for Chinese investment and underscore investor confidence in the ability to cut deals in the world’s second-largest economy in the face of economic slowdown and trade tension with the United States.

DCP in a statement on Tuesday said it raised over $2 billion for its DCP Capital Partner I dollar fund from investors, known as limited partners. The fund was “significantly” oversubscribed due to strong demand from investors such as pension funds, funds-of-funds and sovereign wealth funds, it said.

Along with a concurrently raised yuan-denominated fund, committed capital reached about $2.5 billion, putting DCP among several China-focused investment managers that have funds in both U.S. and Chinese currencies.

China-focused private equity and venture capital managers raised $37 billion last year in dollar-denominated funds, versus $40 billion in 2017, according to data provider Preqin. Asia-focused dry powder – money committed but not yet invested – was a record $291 billion at the end of 2018.

DCP’s investors include Singapore sovereign wealth fund GIC Pte Ltd and state investor Temasek Holdings Pte Ltd, as well as Canadian public pension fund Caisse de depot et placement du Quebec (CDPQ), said a person with direct knowledge of the matter.

DCP declined to comment on the investors.

The Beijing-based private equity firm said it will primarily seek buyout and significant minority investment opportunities in sectors that benefit from consumption upgrade and industry consolidation in Greater China, such as consumer, industrial technology and healthcare.

DCP was set up in 2017 by Liu who was also a co-head of KKR’s Asia private equity business, and Julian Wolhardt, a former senior KKR executive in the region after both worked with the U.S. buyout firm for 11 years. Prior to KKR, Liu and Wolhardt led Morgan Stanley’s private equity business in Asia.

Both had led investments for KKR including in raw milk producer China Modern Dairy Holdings Ltd, home appliance maker Haier Electronics Group Co Ltd and leasing firm Far East Horizon Ltd.

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.