Centurium reaches $1b first close on China fund

The vehicle was launched in the first quarter of the year with an overall target of $1 billion and has since received $925 million in commitments from the likes of sovereign wealth funds, large family offices, and fund-of-funds. A hard cap has been set at $1.5 billion, according to sources familiar with the situation. The fund will primarily pursue buyout deals with some growth capital exposure.

Li spent 14 years with Warburg Pincus before departing in early 2016. The private equity firm backed dozens of companies in China during this period, but during marketing, Li has highlighted 12 that he was heavily involved in. They include Lepu Medical, China Biologic Products, Mofang Gongyu, and Beijing Amcare Women’s & Children’s Hospital. Six of the 12 have been partially or fully realized.

Li has two partners at Centurium: Joseph Chow, who was previously a managing director and head of China deal origination at boutique investment bank Moelis & Co; and Lei Lin, who founded automotive research business Sinotrust Market Research, sold it to Experian Group in 2007, and then engaged in other entrepreneurial activities, some of which are said to have overlapped with Li.

The launch of Centurium continues a trend of middle-market spin-out GPs in China. David Liu and Julian Wolhardt, who previously held leadership positions with KKR in China, are in the process of raising a fund of at least $1.5 billion at DCP Capital Partners, while ex-MBK Partners executive Kuo-Chan Kung established Nexus Point and is targeting $750 million.

Other China-focused funds in the market include Hopu Investment and CDH Investments, which are both seeking $2.5 billion, and Primavera Capital, which is seeking $2.8 billion. The two entities that came out of New Horizon Capital – Advantech Capital and Redview Capital – want to raise a combined $1.5 billion, while CITIC Private Equity is expected to close its third US dollar vehicle at around $2 billion.

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• Topics
• Greater China
• Fundraising
• Buyout
• China
• Centurium Capital
• Warburg Pincus Asia