3i invests $45m in Chinese PE firm

The UK-listed international venture capital and buyout group has committed $45m as a limited partner in a new fund being raised by Chinese growth capital investor CDH China.

3i has announced a $45 million (€35 million) investment in CDH China Growth Capital Fund II, the second fund being raised by Beijing-based private equity firm CDH China.

The investment is part of a $162 million first closing, ahead of a planned final close on $310 million. Founded in August 2002, CDH closed its debut fund – CDH China Fund I – on $102 million.

“We are delighted to welcome 3i as an anchor investor in the new fund,” said Dr Wu Shangzhi, CDH managing director. “3i’s extensive international network and overall experience will add value to our current portfolio and the prospective opportunities we consider.”

Added Jamie Paton, managing director of 3i’s North Asia team: “Dr Wu and his team have an outstanding reputation and track record and

We believe this strategic step for 3i will provide an efficient way of further building our knowledge and network in China

Jamie Paton

we believe this strategic step for 3i will also provide an efficient way of further building our knowledge and network in China.”

3i has made a number of investments in Chinese companies from its offices in Hong Kong and Singapore, including: Focus Media, an outdoor digital media advertising business; GST Group, a domestic fire alarm manufacturer; and Amperex Technology, a lithium ion polymer battery business.