Hony's second RMB fund targets Chinese firms' overseas aspirations
One month after Chinese buyout major Hony Capital announced that it would raise an RMB10 billion ($1.5 billion) yuan-denominated fund – it’s second – the Beijing-based firm has confirmed that the fund will target PRC companies looking to ramp up exposure and operations overseas via mergers and acquisitions.
Hony has raised RMB7 billion ($1.05 billion) for the fund to date. According to the firm, Hony initially targeted a hard cap of RMB8 billion ($1.2 billion), yet its initial close prompted Hony to increase its target. The second close is slated to come by May. The company confirmed last month that RMB3 billion ($452 million) of the second fund has been invested by the National Social Security Fund (NSSF).
This follows Hony's RMB5 billion ($750.8 million) fund, launched in 2008, which has since been fully deployed. Hony itself was established in 2003 as a division of Legend Holdings, and focuses on mid-cap targets in China across sectors, including financial, pharmaceutical and energy firms, which the second fund will also target, a Reuters report notes. Hony claims more than $3 billion under management across five funds.
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