Haitong Capital, Orient International launch RMB buyout fund
Haitong Capital, a PE arm of Haitong Securities, and Shanghai-based logistics company Orient International Enterprise have launched a renminbi-denominated buyout fund with a target of RMB3 billion ($493 million).
According to a regulatory filing, the joint venture GP - Haitong Buyout Fund Management Company - will have RMB100 million in initial registered capital. Haitong Capital, the controlling shareholder, will contribute RMB51 million to the new company, while Orient International will take a 5% interest for RMB5 million.
The joint venture will operate the new fund, which has received RMB1 billion from Haitong Capital and RMB145 million from Orient International. The remaining capital was contributed by undisclosed investors.
The fund has a five-year investment horizon and is expected to deliver an IRR of 18%.
It was reported in June that Haitong Capital was launching its first renminbi- and US dollar- denominated buyout funds, targeting at least $526 million.
The renminbi fund will focus on domestic companies while its US dollar counterpart will invest in foreign firms with the potential to expand in China. Both will primarily operate in the consumer goods and services sector.
By the end of last year Haitong Capital had over RMB6 billion in assets under management.
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