China Everbright, IDG launch $3b M&A fund

The IDG-Everbright M&A Fund has already completed its first round of fundraising, receiving RMB2 billion from a wholly-owned subsidiary of Hong Kong-listed CEL and RMB8 billion from other institutional investors, according to a filing.

The fund will be managed by investment professionals from IDG and CEL, with each group making a GP commitment of RMB50.5 million. The third-party LP commitment comes from a CEL entity that provides asset management services to specific clients; CEL indirectly holds a 35% interest in the entity.

The fund has more than 20 pipeline projects moving towards a close, with some investment agreements already signed. Hugo Shong, founding partner of IDG, said it would leverage evolving consumer demand in China as well as the transformation of traditional industries through M&A, spin-offs and pre-IPO investments.

"CEL and IDG Capital have great investment track record, rich pipeline project reserve, long-term fund management experiences and solid investment style. We hope to leverage on the historical business cycle of industry upgrade and create great financial return for investors through the launch of this fund," he added in a statement.

CEL and IDG have collaborated in the past, most recently participating alongside other investors in a $60 million round of funding for Circle, a US-based financial technology start-up seeking to build a blockchain-supported peer-to-peer payments system business in China.

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• Topics
• Greater China
• Fundraising
• Renminbi fund
• IDG Capital Partners
• China Everbright
• M&A
• China