China Communications, NSSF set up infrastructure fund

The vehicle, CCCC First Phase Equity Investment Fund, received RMB9 billion from state-owned enterprise CCCC and RMB6 billion from NSSF, according to a filing. The pension fund will hold a 40% stake in the investment entity while CCCC will have 59.9%.

The fund will invest in large Chinese infrastructure construction projects, general development projects for urban complexes and other assets capable of turning into positive cash flows. It will follow equity or mezzanine investment strategies.

Headquartered in Beijing, Hong Kong-listed CCCC operates in the design and construction of transportation infrastructure, dredging and heavy machinery manufacturing business. It generated RMB366 billion in revenue last year, up from RMB332 billion in 2013, while its net profits increased from RMB12 billion to RMB14 billion during the same period.

The NSSF, China's largest pension fund, comprises financial budget allocation from the government, transference of state-owned capital, fund income and capital raised through other channels approved by the State Council. The fund generated an investment return of 11.69% in 2014, up from 6.2% the previous year.

NSSF has been investing in domestic private equity funds since 2004 and four years later won regulatory approval to deploy up to 10% of its assets in private equity. As of last year, it had made LP commitments to 19 PE and VC funds, including vehicles managed by the likes of Hony Capital and CDH Investments.

The fund also makes direct investments. In June, it participated in a funding round for Alibaba Group's internet finance affiliate, Ant Financial Services, that was said to value the business at more than $40 billion.

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• Topics
• Greater China
• Infrastructure
• Fundraising
• China
• Infrastructure
• NSSF
• Fundraising
• LPs