Shanghai Chengtou commits to Hony's Fund VIII
Shanghai Chengtou Holding, a Shanghai-listed property developer which is also a portfolio company of Hony Capital, has committed RMB400 million ($62 million) to the GP’s latest China fund.
The listed company confirmed the LP commitment in a filing. Hony is the second-largest shareholder of Shanghai Chengtou, having acquired a 10% stake in the listed company for RMB1.8 billion in 2013.
Hony Capital Fund VIII, which has a target of $2 billion for its core corpus, reached a first close of $1 billion late last year. The vehicle comprises two pools of capital - one US dollar-denominated and the other renminbi-denominated - each with a target of $1 billion. The two pools will invest in the same assets based on their respective portions of the overall fund.
The GP is also raising a $600 million co-investment side vehicle that allows LPs to participate in cross-border transactions outside of China. Prospective foreign portfolio companies are expected to have strong growth potential in China.
The fund will invest in mainland China, Hong Kong and Taiwan. Half of the corpus is expected to be deployed in state-owned enterprises (SOEs) that need to be reorganized in both private and public markets. It will also invest in private companies that are undergoing restructuring or transformation, or are in distress.
Shanghai Chengtou is principally engaged in property development and distribution, but also has an environment protection business that converts municipal waste to energy.
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