CDH closes $525m renminbi mezzanine fund
China-based CDH Investments has closed its latest renminbi-denominated mezzanine fund at RMB3.5 billion ($525 million), exceeding a target of RMB2 billion.
The fund has received commitments from 17 institutional LPs, 10 of which are Chinese insurance companies. They include People's Insurance Company of China (PICC), ICBC-AXA and Huatai Insurance. Chinese endowments and state-owned enterprises (SOEs) also feature in the investor base, CDH told local media.
The fund, which has already made its first investment in a commerical property development project in the US, is looking to provide acquisition financing and growth capital for Chinese companies across the education, healthcare, consumer and energy sectors.
Several investors are seeing more opportunities in the growth mezzanine space as China's economy slows, setting up offshore and onshore vehicles to provide financing to Chinese companies.
CDH's mezzanine and credit business was launched in 2011 and currently manages over $640 million through several US dollar and renminbi funds. Investments have been made in more than 15 projects with at least six exits.
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