CDH nears $2bn target

The Hong Kong-based firm is still fundraising for its fifth China-focused vehicle, expecting to reach or surpass its target before the end of the year.

CDH Investments, Asia’s largest private equity manager, has raised about three-quarters of the target for its latest private equity fund and is expecting some large commitments shortly, a source with direct knowledge of the matter told Private Equity International. 

The firm’s fifth vehicle is targeting $2 billion, with a hard-cap of $2.5 billion, and expects to close on $2 billion or more by the end of 2013, the source said. 

CDH declined to comment on fundraising. 

The firm made a first close on about $800 million in February, quickly raising more than $200 million in commitments shortly after, PEI reported earlier. LPs in the fund include pension funds, endowments and sovereign wealth funds, evenly split between the US, Asia and Europe and the Middle East. 

Asia Alternatives, LGT Capital Partners and long-standing supporter of CDH, the Government of Singapore Investment Corporation, are confirmed investors in the vehicle. 

While CDH will remain a China-focused vehicle, the fund has a 15 percent carve-out, which can be used opportunistically outside the mandate, the source added. However, CDH is currently considering lowering this figure. 

The firm has grown to be Asia’s top private equity manager in terms of assets under management, according to PEI’s Research & Analytics division. The firm had $8 million in AUM as of mid-July, roughly 12 percent that of Goldman Sachs, the world’s largest private equity manager, with an AUM of $68 billion, according to a recent Towers Watson study.

CDH was also in the news recently when the founder of its venture capital business, Wang Gongquan, was detained earlier this month by Chinese authorities due to his involvement in the New Citizens Movement, a civic group that advocates greater transparency in government, according to several media reports.

However, a CDH spokesman clarified that Wang left CDH Venture two years ago and has no connection to the firm anymore.