China Everbright’s private markets business sees profit spike

In the same period of 2012, the unit's pre-tax profit fell 60% year-on-year to $176 million.

In the primary market space, the group operates three private equity funds under the China Special Opportunities Fund series, three venture capital funds, and four sector focus funds covering infrastructure, real estate, low-carbon new energy and new material, and medical and healthcare.

China Everbright, the overseas unit of state-owned conglomerate China Everbright Group, is primarily engaged in cross-border multi-asset management in Hong Kong and mainland China. Its pre-tax pofit for the first half fell 3% year-on-year to HK$992 million.

Over the course of the six-month period, Everbright-managed funds added 10 primary investment projects, bringing the total number of portfolio companies to 59. It also raised HK$22 billion and made some divestments.

"Given the ongoing consolidation of China's private equity industry and the structural economic reforms, the team remained cautious at investments," the company said.

Through its PE funds alone, the firm has made 19 investments to date. These include Anhui Yingliu Group, a Chinese steel casting manufacturer ready to go public once the domestic IPO market re-opens. BGI Tech Solutions, Wufeng Rice Industry and Yuan Cheng Logistics are also working on IPO plans.

China Everbright's three renminbi-denominated venture capital funds have moved into the post-investment management phase. Portfolio companies CECEP Wind-Power and Hanbang Technology have also won regulatory approval to list.

Of the sector focus funds, Everbright Ashmore Real Estate Fund has $1.12 billion in assets under management, of which $154 million has been deployed. Meanwhile, Macquarie Everbright Greater China Infrastructure Fund is still fundraising and has so far accumulated $870 million.

Everbright plans on raising a renminbi-denominated infrastructure fund a healthcare fund in the second half of the year.

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• Topics
• Greater China
• Performance
• Fundraising
• Investments
• China
• China Everbright
• Performance
• Infrastructure
• Real estate
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• Renminbi