Chinese steel manufacturer invests in $163m PE fund
Guangzheng Group, a Shenzhen-listed steel manufacturer, has invested RMB20 million ($8.25 million) in a private equity fund jointly launched by a unit of Tsinghua Holdings and Harvest Capital, which has a target size of RMB1 billion.
The fund, called Wu Dao Kou Innovative Equity Investment, will look at different strategies, including equity investments, PIPE financing, mezzanine, buyout and M&A both in public and private markets in China, according to a regulatory filing. Individual investors in the fund should commit at least RMB10 million apiece while institutions have to invest a minimum RMB$20 million.
By relying on a professional investment team, Guangzheng expects to generate higher return from participating in the fund, it said in a filing. Based in Urumqi, the firm manufactures steel structures and building materials.
Harvest Capital, formerly Sino-Can Harvest Capital, operates investment banking, private equity investment and asset management businesses. In April, the firm closed its second US dollar-denominated fund - Great China Motivation Fund Phrase I - at $300 million.
Harvest claims to have established a national enterprise tracking system, which covers 280 industries and over 15,000 potential enterprises that meet the IPO criteria. Another dedicated unit provides financial solutions to Chinese enterprises.
Tsinghua Holdings is a state-owned company responsible for managing the majority of Tsinghua University's commercial assets. As of year-end 2012, Tsinghua Holdings had approximately RMB70.4 billion in assets and a net income of RMB1.45 billion.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.