ClearVue targets $600m for third China consumer fund

The target was disclosed in a US regulatory filing. ClearVue was founded in 2012 by Harry Hui, previously head of marketing for Pepsico International in China, and William Chen, formerly of DT Capital Partners. They invest along the themes of modernization, consumer lifestyle, health and wellness, and digitally-enabled consumption.

Much of the work ClearVue does with its portfolio companies involves brand building – from product development to manufacturing processes to packaging design – with a view to expansion in China’s fast-growing but also increasingly discerning consumer market. Investment targets are typically local players but the GP also facilitates market entry for international companies. To qualify, the product or service must account for a sizeable portion of consumer time and wallet share.

Speaking to AVCJ after the Fund II close, Hui highlighted companies that tap into lifestyle changes driven by the modernization of consumption as a key trend for the coming five years. This involves the migration from wet markets to organized trade and from loose packaged goods to packaged goods, but also the adoption of technology. “Technology is something you cannot ignore as a potential disrupter or enabler to companies in China, and food is technology. Demand for healthier, organic and premium options in food is leading to a lot of innovation,” Hui said.

The ClearVue portfolio includes e-commerce sites Fruitday and Tablelife, which specialize in imported fruit and premium foods, respectively, as well as coconut water producer CHIC Juice and nutritional beauty products manufacturer Lumi. It has also entered the new retail space, backing smart vending machine operator Citybox and cashier-less convenience store chain I Believe.

In addition, there have been a number of later-stage bets on technology-enabled platforms such as used car players Uxin and Souche, Ping An Healthcare & Technology, which operates the Ping An Good Doctor mobile app, and online-only insurance business Zhong An Insurance. Uxin, Ping An Healthcare, and Zhong An have all gone public in the past 18 months and are trading at discounts to their IPO prices. Another portfolio company, online pharmacy operator 111 Inc, also completed a listing towards the end of last year.

ClearVue closed its debut fund at $262 million in February 2014, with backing from LPs such as Fidelity, HarbourVest Partners, J.P. Morgan Asset Management, Robert Wood Johnson Foundation, and Verlinvest. Fund II saw greater representation from pension funds, endowments and strategic investors from the fast-moving consumer goods space.

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• Topics
• Greater China
• Growth
• Consumer
• Fundraising
• China
• ClearVue Partners