CDH wealth management unit to raise emerging markets fund

The platform, operated independently of CDH's private equity business, has already made several investments in India. It has backed the likes of lifestyle brand Mayfair, social commerce player GlowRoad, and Cashify, an online marketplace for used smart phones, that is supported by several other Chinese investors and Aihuishou, a China-based company with a similar model.

A total of $50 million has been deployed across six investments so far, said Wei Ying, a managing director with the platform, according to a local media report. The report – which also referenced the CDH Emerging Markets Fund – was republished on CDH's social media channels. The firm gained some initial insights into the Indian market three years ago through one of its LPs. It is now assembling a team comprised of existing investment professionals and local hires.

Ying compared India's economy to that of China circa 2005-2006, which serves as a reference point when identifying investment opportunities. He also highlighted India's youthful population, the rapid increase in mobile data traffic, and the emergence of multiple local technology unicorns.

Interest in India among Chinese venture capital firms is well established. In 2017, local technology companies raised $3 billion across 21 deals involving Chinese investors. Morningside Ventures and Shunwei Capital participated alongside the CDH platform in the Cashify deal. Other groups that have ventured into the market include Cyber Carrier and Fosun RZ Capital.

CDH has around $20 billion under management across private equity, venture capital, real assets, mezzanine and credit, public equities and wealth management. As of year-end 2017, the wealth management division at RMB23.9 billion ($3.5 billion) in assets. It was established to meet the needs of high net worth individuals, many of whom joined the CDH network through investments in the firm's renminbi-denominated funds.

CDH is in the process of raising approximately $1 billion for its second growth fund – which comprises US dollar and renminbi tranches – and up to $2.5 billion for its sixth flagship US dollar private equity fund. Both funds have a mandate to invest in China, although the flagship can selectively target deals overseas where there is a China inbound angle.

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• Topics
• Greater China
• Fundraising
• Growth
• South Asia
• China
• India
• CDH Investments Management