Jiuding Capital reaches first close on latest RMB fund

Jiuding Strategic Fund, which has already commenced investment, is expected to hold a final close by the end of this year. The fund received about 80% of commitments from institutional investors, including state-owned China Reinsurance, fund-of-funds and asset management firms.

The GP is currently seeking capital from other insurers.

The fund will invest across the retail, pharmaceutical, agriculture, mining and services sectors. It will focus on growth stage equity investments as well as M&A.

AVCJ Research shows Jiuding has so far closed 13 renminbi funds and one US dollar fund since 2007, raising about $723.2 million, although one of these renminbi funds' sizes haven't been disclosed. In addition to Jiuding Strategic Fund, one more renminbi fund - Jiuding Mining Industry Investment Fund - is currently in the market.

Jiuding's investment approach - like that of many local PE firms - involves getting companies listed as quickly as possible, leveraging the exit multiples available on domestic bourses. However, the embargo on domestic IPO approvals has called into question this model.

Speaking at a conference earlier this year, Zhongyi Zhao, founding partner at Jiuding, said the firm will not change its strategy.

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