GLP, Sequoia commit $800m to China's Harvest Capital

Harvest, which was established in 2006 and has approximately RMB20 billion ($3.1 billion) in assets under management, claims several third-party investors. In 2018, it received $480 million from Hongtai Hengye Investment, according to a statement.

The firm offers a combination of private equity investment, asset management, and boutique investment banking services. It has also developed an online-to-offline (O2O) financial services ecosystem intended to bring together fund management, insurance, brokerage, wealth management, credit, and payment services under single online accounts.

On the PE side, Harvest has built out three investment tracks within the consumer and services sphere: a conservative strategy characterized by bets on companies that are part of the fundamental consumer infrastructure and generate long-term compounded returns; investments in consumer-oriented growth brands, typically with significant exposure to lower-tier cities; and a higher-risk strategy focused on the technological transformation of traditional consumer verticals.

There is significant portfolio exposure to food and beverage through specialist food suppliers Qiaqia Food, Zhongyin Babi Food, Jiajia Group and Lyfen, restaurant chain operators Home Original Chicken and Wenheyou, and energy drink brand Eastroc Beverage. Harvest is also invested in O2O local services giant Meituan, metal packaging business ORG Packaging, lingerie brand Aimer, home décor business Easyhome, and Taikang Insurance Group.

Xiangqian Song, Harvest’s founding partner and chairman, said the firm abides by certain immutable investment principles: buy industry growth, buy company growth, and buy into top-quality entrepreneurs.

"As we let the application of the three principles trigger ‘buy’ signals, we can achieve corporate value growth fueled by the 'Davis Double Whammy' effect, and create long-term value. We are an organization that believes in the compound value of time," he added.

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• Topics
• Greater China
• Consumer
• GPs
• Investments
• China
• Harvest Capital
• Sequoia Capital
• GLP
• M&A