CDH Investments closes China mid-market fund on $800m

The Beijing-based firm has reportedly exceeded its target of $600m for its latest China-focused vehicle.

Beijing-based private equity and venture capital CDH Investments has closed its China mid-market fund on $800 million beating its $600 million target, according to media reports.

The firm, which began raising capital for CDH China Mid-market Fund in 2015, typically invests in Chinese consumer-related industries such as fast growing high-tech and services, healthcare, industrial manufacturing and agriculture.

CDH was looking to raise half of the money for its latest vehicle in US dollars and the remaining half in yuan. At final close, around $300 million was reportedly raised in US dollars and the equivalent of $500 million in yuan.

Limited partners in the firm’s previous funds include the Canada Pension Plan Investment Board, Abu Dhabi Investment Authority, GIC Private Limited, and fund of funds manager Axiom Asia Private Capital, according to PEI data.

Companies in the firm’s investment portfolio include China’s largest pork producer WH Group, China’s largest dairy operations China Mengniu Dairy, co-working space start-up Fountown, and shoe company Belle International.

CDH has over $16 billion under management across private equity, venture capital, real estate and mezzanine funds. It was founded by a group of former veterans of the private equity unit of China International Capital Corporation, China’s first joint venture investment bank.

In August last year, the firm held a final close for its fourth mezzanine fund, raising 3.5 billion yuan from about 20 investors, according to PEI data.

A representative from CDH Investments could not be reached for comment by press time.