China Renaissance in $604m first close on renminbi fund
China Renaissance has reached a first close of RMB4 billion ($604 million) on the third renminbi-denominated fund raised under its flagship Huaxing Growth Capital arm. A final close of up to RMB6 billion is expected in early 2018.
The firm raised RMB5.4 billion for its second local currency vehicle in 2015, according to a spokesperson. It includes some of the GP’s largest investment positions, including online real estate platform Lianjia, online steel-trading platform Zhaogang, and JD Finance, an internet-based financial services business that was spun off by JD.com.
The Huaxing Growth Capital team has also raised two US dollar funds since 2013. Prior to the first close on the latest renminbi vehicle, total assets under management (AUM) stood at $2.86 billion.
The remit is to back revenue-generating companies – that typically involve technology innovation or industry transformation through automation – with products and services for which there is established market demand and the potential to achieve a valuation in excess of $1 billion. The funds commit $20-70 million per deal as the lead or co-investor.
Last month, China Renaissance added dedicated healthcare and mezzanine debt strategies as part of efforts to achieve AUM of $10 billion by 2020, up from the current $3 billion. At present, 90% of AUM is contributed by Chinese investors and the plan is to increase the foreign LP share to 30-40% of the enlarged target.
Meanwhile, the firm is also developing its domestic investor base. The third renminbi fund includes banks and insurance companies as well as the fund-of-funds and high net worth individuals that have traditionally accounted for the bulk of commitments.
China Renaissance – best-known for providing private placement and M&A advisory services to Chinese internet companies – started making proprietary investments in the technology space and used that as the basis for an independent asset management business. It also provides securities underwriting, research, sales and trading, and other financial services.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.