Bull Capital in $200m first close for second China fund
Bull Capital Partners has reached a first close of $200 million on its second China fund. The GP has also completed its first investment from the vehicle, backing Shanghai-headquartered used car business CarKing.
South Korea's Shinhan Group is an anchor investor in Bull Capital China Growth Fund II, while other contributions have come from leading family offices in Hong Kong and China, including significant re-ups from LPs in Fund I. The GP commitment is $45 million.
The fund has a full target of $400 million and a hard cap of $500 million. A final close is expected before the end of 2015.
Bull Capital's first fund was the Peregrine Greater China Capital Appreciation Fund, which reached a final close of $200 million in May 2008. Shinhan was among the LPs. As of March 2014, the fund had delivered a net IRR of more than 45% and a net multiple of 3.2x, according to the GP. There have been eight investments, with two companies listing in 2010 and a third in 2014.
Sun King Power Electronics, in which Bull Capital took a 14.3% stake for $10 million in 2009, went public in Hong Kong in October 2010, raising $147 million. As of June 2014, the PE firm held a 6.57% interest in the company.
Bull Capital also participated in online retailer JD.com's second round of funding, AVCJ Research data show. By the time the company listed last year, raising $1.78 billion, Bull Capital held a 2.2% interest, falling to around 1.9% post-offering. This would have been worth around $500 million at the IPO price.
The investment in CarKing is structured as a subscription to $22 million in Series D redeemable convertible preference shares. It also entitles Bull Capital to appoint one member to the company's board.
Founded in 2011, CarKing operates 15 outlets - of which 10 are directly-owned and five franchised - in 12 cities. It offers a wide selection of used cars at competitive, "no haggle" prices. All cars go through a comprehensive inspection process before being put on sale and CarKing provides warranties.
Bull Capital has a team of 11 professionals based in offices in Hong Kong and Shanghai. It targets investments in the consumer, advanced manufacturing and environment sectors.
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