CDIB Capital commits $30m to China outdoor sports retailer
CDIB Capital has invested RMB200 million ($30 million) in Tutwo Outdoor, a multi-brand outdoor sporting goods retailer with more than 900 stores across China.
Established in 2006, Tutwo is the only nationwide outdoor retail chain in the country, according to a statement. Its 145,000 square meters of retail space - which includes 44 large format stores - is 10 times larger than the number two player in the industry.
The company stocks more than 300 domestic and international brands, covering activities such as camping, hiking, fishing and biking. It also works under a brand licensing model, working with particular brands to co-develop products. In addition, there are two in-house brands: Senselead and Green Giant.
"We believe that the outdoor sports sector offers tremendous growth potential in China as the middle class starts adopting healthy recreational activities as a way to enjoy their free time. Our investment in market-leading Tutwo capitalizes on that positive lifestyle trend," said Lionel de Saint-Exupéry, president and CEO of CDIB Capital.
The statement added that China's outdoor retail market has been growing at 25% per annum since 2010, driven by low penetration rates in addition to rising household incomes.
CDIB Capital, the PE arm of Taiwan's China Development Financial (CDF), was set up in 2006 using balance sheet money. The firm closed its debut Asia private equity fund - with commitments from fund-of-funds, family offices, sovereign wealth funds, insurers and corporations - last year at $405 million.
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