CITIC PE closes debut USD fund on $990m

CITIC PE launched half of the fund in the first half of 2010, targeting $800 million. A first close was quickly achieved in October 2010, followed by a second close completed in December 2010. The final close, which comes above target, suggests the overwhelming market demand and interest from potential LPs with more than $1.2 billion of total commitment.

CITIC PE noted in a press release that the capital for the CPEChina Fund came from 39 global institutions, from limited partners in North America, Europe, the Middle East and Asia. The geography of the investors evenly distributed capital to the fund. Profiles of the investors could be further broken into sovereign wealth funds, family offices, fund of funds, pension funds, endowments, banks and insurance companies and other financial institutions.

"The commitment in the fund from overseas region was resulted in quite similar portion, and each of limited partners showed very strong interests and have committed themselves as the long term investor," a spokeswoman at CITIC PE told AVCJ.

The USD fund comes less than 15 months after CITIC PE closed its RMB9 billion ($1.4 billion) Mianyang Private Equity Fund, which has been touted as China's largest local-currency fund. The CPEChina Fund's investment will continue to target the same areas as the RMB fund, namely in five domestic spaces comprised of manufacturing and technology, financial institutions and services, energy and resources, healthcare and consumer goods and retail. A Caixin report adds that CPEChina Fund will specifically target companies operating on the Mainland, as well as global acquisition projects by Chinese companies.

While global LPs expect high yield from China and companies related to its rapid growth, LPs at the same time are concerned about emerging risks, which could be a determinant to whether investors continue investing.

"Making investments in China are more complicated than other regions, that is why we have members who has experiences and knowledge in the industry on the ground," CITIC PE's spokeswoman said. "Our portfolio dedicated team will help mitigate risks while we are managing portfolios."

Both vehicles will be operated by same team of managers, made up of roughly 100 professionals led by President of CITIC Private Equity Funds Management Wu Yibing.

The firm's typical investment size will fall between the $50 million-$150 million range, and it will maintain a life period of 10 year.

CITIC PE currently operates in China, Japan and the United States, and has invested in approximately $2.8 billion to date.

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• Topics
• Greater China
• Fundraising
• CITIC Capital Partners