Orchid raises $1.3b for Fund VII – update

Fund VII was launched in July 2017 with a view to providing growth capital to experienced executives who are building franchises in China. 

It follows a $75 million commitment from Pennsylvania Public School Employee’s Retirement System in October 2017. Additional disclosed investors include British Columbia Investment Management, Maryland State Retirement & Pension System, and Oregon Public Employees Retirement System.

The fund is expected to make equity investments of $20-150 million in 20-25 companies with a minimum enterprise value of $50 million. There will be a 5.56% GP commitment – no less than $50 million – alongside the fund and Orchid has allowed for up to 7% in employee co-investment.

The strategy is in line with the firm’s previous fund, which launched in March 2014 with a target of size of $750 million and closed five months later at the hard cap of $920 million. Orchid focuses on companies in the consumer products and services sector, as well as outsourcing manufacturing, technology, media and healthcare, where there are strong growth prospects and barriers to entry.

Recent investments include orthopedic medical device manufacturer Beijing Chunlizhengda Medical Instruments and mobile app developer SweetSelfie. In June 2017, the firm contributed to a $29.4 million investment in agriculture e-commerce platform DFS18.com.

Orchid was founded in 1993 and raised $42 million for its first fund the same year. That fund is now fully liquidated, as is its 1997 vintage successor. Of the remaining funds, three are fully committed or considered to be in the divestment phase. The firm claims to manage about $3 billion of assets in total via offices in Hong Kong, Shenzhen, Shanghai, Beijing and Guangzhou. 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• Growth
• China
• Orchid Asia Group Management
• GPs