Beijing-based growth equity investor Oceanpine Capital has held the final closing of its second US dollar fund, Oceanpine DeepTech Fund, at $400 million to make new bets on deeptech and innovative growth-stage companies in China’s TMT and biotech sectors.
Limited partners (LPs) in the final closing included Oceanpine’s management team and other global institutional investors, mainly from the US and Asia, including insurance firms, entrepreneurs & founders of technology companies (mostly listed), asset managers, family offices, and venture capitalists, said the firm in a WeChat post on Wednesday.
The final closing, which was completed in December 2020, came about seven months after Oceanpine reached the first closing of the new vehicle in May, at $200 million. Oceanpine said that it already invested about $200 million across approximately ten deals.
The final closing comes at a time of virus-induced social distancing that has made it more difficult to close new funds. The number of new private equity (PE) funds to reach final closing fell sharply in the first half of the year. Globally, 552 PE funds reached their final closing in H1 2020, 31 per cent fewer than in the same period in 2019, according to data provider Preqin.
Oceanpine DeepTech Fund represents the firm’s first attempt to raise capital from external LPs since its inception in December 2016. Its $400-million debut US dollar fund was launched with the GP’s internal capital in 2016.
The Fund I was fully deployed with two exits and four initial public offerings (IPOs). The predecessor fund booked 50 per cent in distribution to paid-in (DPI), which measures the cumulative investment returned to the investor relative to invested capital.
Upon the completion of the vehicle, Oceanpine also started the fundraising work for its new RMB-denominated fund, targeting to collect 2 billion yuan ($309.7 million), said the firm.
Dave Chenn, founder, CEO & managing partner of Oceanpine, had created Beijing-based multinational firm China Century Group in 2005 before he built Oceanpine. China Century employs over 5,000 staff globally and involves in a range of businesses, such as technology, tourism, healthcare, residential property development, and finance.
According to its website, China Century is an LPs in major PE companies including Hillhouse Capital, as well as an investor of firms like Uber Technologies.
By far, Oceanpine has invested a total of over $1 billion in more than 40 companies in China and the US through Fund I and other investment vehicles, such as AI computing-power specialist Enflame Technology, biotech firm Ansun Biopharma, AI chip designer Horizon Robotics, AI startup Black Sesame, and US-based graphical database platform TigerGraph.
Oceanpine expects about 10 of its portfolio companies to complete a follow-on funding round within the next six months, and over five companies to initiate IPO preparation work in 2021.