CICC set to make RMB1.5b first close on new fund

According to a source, large state-owned enterprises such as China's Social Security Fund and the China Development Bank are considering investing in the vehicle. In addition, Jiangsu Yanghe Brewery Joint-Stock Co said in a statement submitted to the Shenzhen Stock Exchange that it had agreed to commit RMB300 million ($46.3 million) to the fund. That statement referred to the vehicle as the "CICC industry consolidation fund," adding that it will target both listed and non-listed companies. This appears to tally with wider reports suggesting the vehicle will target domestic takeovers.

The news comes less than a year after CICC launched a $500 million USD fund. That fund was raised through the investment bank's Hong Kong unit, and CICC itself contributed approximately 10% of the total sum, Shirley Chen, head of CICC's private equity business, told AVCJ in May last year ahead of the raise. The fund's mandate includes consumer, healthcare, renewable energy and education targets, with investments made at $30 million per tranche.

In December, private equity players KKR, TPG, the Government of Singapore Investment Corporation (GIC) and Great Eastern Life Assurance collectively took a 34.3% stake in CICC, purchased from Morgan Stanley. The US investment bank helped set up CICC in 1995, investing $35 million in partnership with China Construction Bank and China National Investment and Guarantee Co., and becoming its second-largest shareholder.

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• Topics
• Greater China
• Renminbi fund
• Fundraising
• KKR
• TPG Capital
• GIC Private
• Morgan Stanley