China's Riverhead Capital closes $295m renminbi fund

This is the vehicle raised in the Xiamen Hongshang Fund series. It takes the firm's total assets under management to CNY 30bn across seven funds, according to its website.

Approximately 80% of LPs in Fund I re-upped for Fund II. Shenghao Shi, a managing partner at Riverhead said in a statement that the strategy will be unchanged and focus on backing entrepreneurs in healthcare and emerging technologies.

Founded in 2015, Riverhead was one of the first domestic private equity units launched by a Chinese insurer. It has invested CNY 200bn in about 70 companies to date, including the likes of Mindray Medical, I-Mab Biopharma, SenseTime, Enflame Technology, Full Truck Alliance, AInnovation, Womai, and Capilano Honey.

The firm has seen 16 companies complete IPOs and it claims a dozen more listings are in process. Proceeds from post-IPO exits exceed CNY 7bn. Riverhead's debut healthcare fund, launched in 2015 with a corpus of CNY 4bn, has achieved distributions to paid-in (DPI) of 120%.

Riverhead said that, despite challenging conditions in 2022, 80% of its portfolio companies raised capital over the course of the year. It also completed more than 10 new investments, including Raykol Group, an automated lab systems and products developer, and CellProBio, a plasticware manufacturer that serves the life sciences industry.

In June 2022, the firm joined a CNY 500m pre-IPO funding round for Shandong Seek Pet Products, a China-based pet food manufacturer. The round was led by Boyu Capital and Confitop Capital.

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• Topics
• Greater China
• GPs
• Fundraising
• Renminbi fund
• China
• River Head Capital
• Fundraising