Trustar seeks $3.5b for fifth China buyout fund

The firm has been sounding out the market regarding the new flagship vehicle, according to Mergermarket, AVCJ’s sister publication. No detail was given as to the specific launch date, although it reported that existing LPs have been engaged in due diligence since April. Trustar declined to comment.

China fundraising has been challenging for much of the past year, following regulatory crackdowns across the technology sector, the repurposing of after-school tuition as a non-profit industry, and uncertain prospects for US listings. Some LPs are still doing re-ups; others have put allocations on hold pending review.

Approximately USD 4.5bn has been raised in 2022 to date for US dollar-denominated funds, with a further USD 11.9bn going to renminbi vehicles, according to AVCJ Research.

Commitments to US dollar vehicles rose from USD 16.9bn in 2020 to USD 20.1bn in 2021, but more than 70% of the capital was raised in the first half of the year, notably before the introduction of additional requirements for offshore IPOs. Renminbi fundraising fell from USD 42.8bn in 2020 to USD 32.1bn in 2021.

Trustar closed its fourth flagship fund on USD 2.8bn in 2019. Last year, AVCJ reported that the firm was looking to raise a USD 500m growth vehicle. According to Mergermarket, the target was reduced because LPs are wary of backing early-stage growth strategies.

Key buyout themes include corporate carve-outs and investments in foreign companies that have a China expansion angle.

In March, the firm acquired China-based food condiments supplier Beijing Salion Foods, its 11th deal in the food and beverage space. This followed investments in Intramco, a Europe-based manufacturer of components used in electric vehicle (EV) charging, and MedAlliance, a Swiss medical technology business.

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• Topics
• Greater China
• Fundraising
• Buyout
• GPs
• Trustar Capital
• China
• Fundraising