Ascendent surpasses $1b for latest China fund

The final close of $1.03 billion came just before the end of the year, according to a source familiar with the situation. Ascendent raised $950 million from institutional investors, with contributions from the GP and associated parties accounting for the remainder.

The fund launched in January 2019 with a target of $800 million and a first close of $700 million was reached in July. The hard cap was set at $850 million but then revised upwards in response to strong LP interest. Approximately half the corpus was raised from North American investors, with European and Asian LPs contributing 30% and 25%, respectively.

The private equity firm raised $365 million for its debut fund in 2012. Its second vehicle completed a first and final close at the hard cap of $600 million in 2015 after four months in the market.

Ascendent is expected to construct a relatively concentrated portfolio with equity commitments typically in the $50-150 million range. The strategy is to forge relationships with entrepreneurs and management teams, advise on value-add initiatives, strategic alliances, and acquisitions, and contribute capital when appropriate.

There are only 10 investments in Fund II. Two-thirds are significant minority transactions in which Ascendent has downside protection, and one-third are buyouts.

The firm was relatively active in 2019, closing two new investments, after a quiet 2018 in which there were no new deals at all. The pickup is linked to a moderation in valuations, but the climate of economic uncertainty and slower growth is also seen as a good fit for Ascendent's approach because companies are looking for solutions and more willing to listen to advice.

Investments over the past 12 months include a HK$1.5 billion ($197 million) privatization of China Autonomation Group, a Hong Kong-listed industrial control systems manufacturer that the GP first backed in 2016, and a $150 million commitment to internet communities developer NetDragon Websoft Holdings.

Ascendent was established by Liang Meng, previously head of J.P. Morgan's M&A team and the Greater China investment business of D.E. Shaw, and Kevin Zhang, formerly of Goldman Sachs and Trustbridge Partners. Zhang departed in 2018 to launch his own family office.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

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