China's TH Capital hits first close on debut US dollar fund
TH Capital, a private equity firm that originated from China's Tsinghua University and was formerly known as Tsinghua Holdings Capital, has completed a USD 60m first close on its debut US dollar-denominated fund.
TH Capital USD China Growth Fund I, which has an overall target of USD 100m, is intended to make typical renminbi strategies available to US dollar investors. It will operate in parallel with the firm’s local currency funds. LP commitments came from family offices and institutional investors from across Asia, Europe, and the US, according to TH Capital.
The firm has accumulated more than CNY 10bn (USD 1.4bn) in assets under management over the course of 15 years through renminbi funds that back high-growth businesses in industrials and technology. Over time TH Capital has evolved into an independent firm that raises capital under traditional GP-LP fund structures.
Recent deals include leading a CNY 100m Series A round for Aerofugia, an electric vertical take-off and landing (eVOTL) unit of Chinese automaker Geely, and a CNY 320m pre-Series A for Zhongchu Guoneng Technology (ZGT), a local specialist in compressed air energy storage.
The new fund will follow TH Capital’s broader strategy of making growth equity investments across four segments: decarbonization, advanced manufacturing, next-generation information technology, and frontier technologies. Several deals have been lined up to close in September.
The firm claims that its ability to deliver liquidity events despite the disruptions of COVID-19 demonstrated the stability of its portfolio. Sixteen companies have listed on domestic exchanges since the start of 2020. Most recently, Telink Semiconductor debuted on Shanghai’s Star Market last month.
Numerous China-focused managers are struggling to raise capital as LPs move to risk-off mode and many US investors scale back commitments amid geopolitical tensions. About USD 21.5bn was committed to US dollar-denominated China funds last year, according to AVCJ Research. The running total for 2023 is approximately USD 6.1bn.
First-time US dollar funds are few and far between. Earlier this year, Sequoia Capital China spinout Monolith Management reached a final close of USD 264m on its debut venture capital vehicle, surpassing a target of USD 200m.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.