Wattle Hill seeks $300m for Sino-Australian PE fund

A final close is expected in 2017. Investors in the fund include a European insurance company, a leading Chinese privately-owned insurer, and a family office representing the founder of China's largest direct e-commerce player.

Wattle Hill, which also has offices in Hong Kong and Beijing, was set up in late 2015 by Albert Tse, who previously worked for Macquarie Bank. His wife is Jessica Rudd, the daughter of former Australian Prime Minister Kevin Rudd. Wattle Hill focuses on investments in Australian and New Zealand companies with a view to helping them access the Chinese market.

"There are many China-US cross-border funds. But there are few that specialize in China and Australia, and have a deep understanding of both markets," Tse told AVCJ. "Given China now is the second-largest economy in the world, many Australian companies are very keen to tap Chinese growth."

Wattle Hill's four core team members are ex-Macquarie employees with backgrounds in investment and cross-border M&A deals. Tse worked for Macquarie in China between 2009 and 2014, assisting a handful of Chinese state-owned enterprises (SOEs) achieve offshore IPOs.

The fund will target consumer goods manufacturers and service providers through minority or majority investments, committing up to $50 million per transaction, Tse said. Wattle Hill will also bring Chinese companies into deals as co-investors.

The fund has already completed several transactions, including the acquisition of a majority stake in an Australian organic food supplier. Last month, it partnered with Chinese snack food company Qia Qia Food to invest approximately A$26.1 million ($20 million) in Australia's largest ginger producer, Buderim Group. 

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• Topics
• Greater China
• Australasia
• Consumer
• Expansion
• Fundraising
• GPs
• China
• Australia
• Growth capital