Bain, DNE launch $250m China advanced manufacturing platform
Bain Capital and Chinese industrial infrastructure developer DNE Group have jointly launched a USD 250m advanced manufacturing investment platform.
Bain is investing via its special situations strategy. The transaction does not include any debt or distress component, according to a source close to the situation. The source described Bain’s contribution to the USD 250m total as “very large.”
Bain closed its second Asia-dedicated special situations fund on USD 2bn last year; its predecessor raised USD 1bn in 2018. Overall firepower for the strategy, which focuses primarily on bespoke structured expansion capital products, now tops USD 4bn in the region.
The private equity firm was active in special situations earlier this month, when it made a USD 200m commitment to Vietnamese conglomerate Masan Group that featured convertible dividend preferred shares. Masan has interests spanning financial services, natural resources, and food.
The joint venture with DNE is seeded with assets distributed across the Yangtze River Delta, a leading manufacturing hub. After completion, the projects are hoped to promote the aggregation of modern manufacturing companies and contribute to the integrated development of the region. DNE serves as the project manager for the platform, while Bain acts as the strategic investor.
Bain is an active investor in new-economy infrastructure development in China, especially in advanced manufacturing clusters such as the Yangtze River Delta, the Beijing-Tianjin-Hebei region, and the Greater Bay Area. In 2019, it invested USD 300m in DNE subsidiary D&J China.
“The establishment of this joint venture platform signifies a new chapter in the partnership we have developed with DNE since five years ago,” Kei Chua, a partner at Bain, said in a statement. “We look forward to leveraging each other's strengths and resources to meet the growing demand of advanced manufacturing and life sciences companies for a new generation of high-quality, high-value industrial parks.”
DNE has more than USD 16bn in assets under management, including more than 14m square metres of properties serving verticals such as logistics, cold chain, modern manufacturing, life sciences, and urban redevelopment. It received USD 1.5bn from Partners Group StepStone Group, Warburg Pincus, and Sequoia Capital China, now HongShan, in late 2021.
The company also runs DNE Capital, a private equity unit led by former Warburg Pincus investor Yingpei Wang that invests in new-economy technology companies. Separately, it listed one of the first workshop real estate investment trusts (REITs) in China on the Shanghai Stock Exchange in 2022.
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