Ascendent reaches $700m first close on third China fund

The vehicle launched in January with a target of $800 million. The hard cap has now been set at $850 million, according to a source familiar with the situation.

Ascendent recently submitted a HK$1.5 billion ($197 million) take-private offer for China Automation Group in conjunction with the Hong Kong-listed industrial control systems maker's chairman. The GP first backed China Automation via its second fund in 2016. Ascendent made no new investments in 2018 as valuations remained high despite economic uncertainty and market volatility, but conditions began to turn towards the end of the year.

Speaking to AVCJ in March about the general investment environment, Liang Meng, a founding managing partner at Ascendent, said the firm was seeing opportunities arising as companies face temporary balance sheet squeezes or look for solutions to specific supplier, competitor and customer issues. Ascendent serves as a sounding board for these companies, suggesting value-add initiatives, strategic alliances, and acquisitions.

More generally, the firm positions itself as a corporate consigliere, providing advice and solutions to businesses with a view to contributing capital when appropriate. This strategy was a product of its founders' backgrounds, with Meng previously leading J.P. Morgan's M&A team and the Greater China investment business of D.E. Shaw, while Kevin Zhang worked for Goldman Sachs and Trustbridge Partners. Zhang departed last year to establish his own family office.

Ascendent raised $365 million for its first fund in 2012 and $600 million for its second in 2015. Healthcare, education, and industrials are prominent themes in the portfolio.

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• Topics
• Greater China
• Fundraising
• Growth
• GPs
• China
• Ascendent Capital