Capital Today holds $183m first close

The China-focused fund manager is targeting commitments of between $300m and $350m for the final close of its second growth capital fund.

Capital Today, a Shanghai-based private equity firm, held the first close of its second private equity fund on $183 million in December 2009, two sources with direct knowledge of the matter told sister news site PEI Asia.

Capital Today declined to comment.

The firm, which is focused on making growth capital investments in China, is targeting commitments of between $300 million and $350 million for the final close of the fund. It began fundraising in 2009, one of the sources said.

Capital Today closed its maiden fund on $280 million in November 2006, raising 40 percent more than its $200 million target. According to its website, the firm has made 12 investments since 2006. A few of these include Kung Fu, a fast food chain; DQY, a branded egg producer; Sinoway, a herbal skincare producer; Yi Feng Pharmacy, a chain of pharmacy stores; ChinaHR, an online recruiting company; Jing Dong, an online retailer of IT and digital products; and Tu Dou, a video-sharing website.

The firm, which counts CDC Group as one of the investors in its maiden fund, was established in 2005 by Kathy Xu. Xu was formerly an investment professional at Baring Private Equity Asia, a pan-Asian growth capital firm.

The growth capital segment remains the most popular among private equity investors in China. In 2009, 25 of the 30 funds raised with either a sole focus on China or exposure to China were focused on making growth capital investments. In total, the 25 growth capital funds raised capital worth $10.1 billion, according to Zero2IPO Research Centre, a Chinese venture capital and private equity service provider.