CICC PE's assets under management reach $2.4b

These funds include capital within the CICC Jiatai Industry Integration Fund, the bank's debut renminbi-denominated vehicle, which was established in May last year. With a target size of RMB5 billion, the fund currently counts state-owned enterprises (SOEs), private companies and fund-of-funds as its LPs.

"Large institutional players still contribute to most of Jiatai fund's capital and we are confident to generate outstanding performance," Shi-you Chen, managing director of CICC, told Caixin. "Fund-of-funds share a small portion of our overall corpus at the moment, but we value the strategic significance of forming long-term partnership with these vehicles."

Since its inception, Jiatai has already put RMB1.3 billion in six projects and is spending another RMB500 million on three others, Chen said, adding that CICC has made private equity investments in 19 portfolio companies since 2007 and exited from seven through public listings. Three others are also preparing to launch an IPO.

A pilot program under which Chinese securities companies participate in private equity investment was launched in 2007. As it stands, investments must be made from the securities companies' own capital reserves.

However, CICC became the first brokerage to tap third-party investors by raising a $500 million US dollar-denominated fund through its Hong Kong unit in 2010. AXA Private Equity Asia, Government of Singapore Investment Corporation (GIC), Jade Invest and Temasek are among its investors.

Last December, the brokerage also launched the CICC Jiat Tien Private Equity fund, targeting RMB401 million to focus on Chinese herbs. Jiangsu Yanghe Brewery Joint-Stock, which operates within the distilled and blended liquors sector, was said to commit RMB204 million.

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• Topics
• Greater China
• Fundraising
• Renminbi fund
• China
• CICC
• Fundraising