Mandarin reaches first close on third China-Europe fund

It includes contributions from new and existing Italian and international investors, as well as a significant GP commitment, according to a statement. A second close is expected in early 2020.

Mandarin closed its second fund in 2016 with EUR200 million in commitments from the likes of HarbourVest Partners, HQ Capital Asia, and LGT Capital Partners. That fund has fully divested five of its eight investments, achieving a 2.2x multiple and a 39% IRR to date. The GP claims the vehicle returned all its committed capital with four years.

Fund III will follow a similar mandate to its predecessor, targeting middle-market European companies with the potential to expand operations in China. Focus areas include healthcare and various industrial sectors such as environmental technology, energy, and specialty chemicals. Investments are typically in a range of EUR30-50 per deal, comprising control and minority stakes.

The new fund is currently finalizing its first two investments. These include operators in markets related to single-dose espresso coffeemakers and metal accessories for luxury bags and belts. Both deals are expected to be completed within the next month.

Mandarin has made 18 investments since inception in 2007 via offices in Shanghai, Milan and Frankfurt, with no losses recorded to date. Its portfolio is dominated by Italian firms pursuing expansions of existing footprints in China, including household ceramics supplier Elios Ceramica. pharmaceuticals maker Mipharm, and machine parts manufacturer Marval.

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• Topics
• Greater China
• Europe
• Fundraising
• Growth
• Buyout
• China
• Mandarin Capital Partners