CITIC Capital Partners closes ahead on $925 million

The news comes despite reports that the fund closed earlier on $500 million, apparently confusing its February 2009 first close with a final close.

Parent CITIC Capital is owned by China Investment Corp., China's sovereign wealth fund, CITIC International Financial Holdings Ltd. and CITIC Pacific Ltd. LPs in the new fund include the Canada Pension Plan Investment Board, which committed $175 million to the fund in 2009 as a follow-on to its previous $50 million investment in Fund I, and Export Development Canada, which committed capital in the C$15-25 million range.

CITIC Capital China Partners II, LP, (CCCP II) will target buyout and privatization investments in SOEs in China’s consumer products and manufacturing sectors – similar tactics to its debut $425 million buyout fund, launched in 2006. Some three years after its maiden fund, CITIC has boosted its second vehicle to more than double the previous size, with numerous new investors.

Yichen Zhang, CEO of CITIC Capital, said, “We are delighted by the strong support we have received from both existing and new investors. We are confident that our unique combination of top-tier investment professionals, coupled with the unparalleled support of our sponsors, will continue to produce exceptional investment opportunities for CCCP II.” The firm declined to comment further, saying that it will confine comments to its official statement.

Since July last year, China’s $300 billion sovereign wealth fund has been an anchor investor in the parent firm, acquiring 40% of new shares for a reported HK$2 billion ($257.3 million).  After the deal was made, Zhang said that he firmly believed that CIC's strong backing, coupled with CITIC Group's continuing support, would greatly enhance CITIC Capital’s reputation as the buyer of choice for high quality assets in China.

CITIC Capital Partners has strong access to the capital and connections of China’s largest financial conglomerate, CITIC Group, which has about 300 subsidiaries in various segments, including retail, aviation, energy, heavy manufacturing and automotive. The firm is often compared with Hony Capital, backed by Legend Holdings and with around $2.8 billion under management, but the new fund closing will definitely help maintain parity between the two. The close also illustrates the strength of demand among global LPs for strong China propositions, which are currently some of the most attractive investment prospects worldwide, according to AVCJ sources.

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• Topics
• Fundraising
• Greater China
• Buyout
• CITIC Capital Partners