China Everbright collects $294m for global fund

The CEL Global Investment Fund will invest in European and US companies looking to expand in China.

Hong Kong-based private equity manager China Everbright (CEL) has held a second close on its global fund on $294 million, more than halfway through its $500 million target, according to a company statement.

The CEL Global Investment Fund was launched in early 2016 and held a first close on $264 million in April last year. The firm is targeting returns of more than 20 percent and is eyeing a mid-2017 final close, as previously reported.

The fund will invest in equities and equity-linked securities of US and European companies that are targeting expansion in China. Favoured industries include precision manufacturing, advanced transportation equipment, agricultural technologies, consumer goods, media, and healthcare.

Cross-border deals is major investment strategy of CEL across all its funds. In previous years, the firm has made investments in Michigan-based intelligent machine manufacturer Burke Porter Machinery and Chicago-headquartered precision surfacing solutions company Lapmaster Group Holdings. The firm is also in the process of raising capital for its Sino-Israel fund called the Catalyst-CEL Fund, which has to date secured commitments of more than $200 million from investors.

CEL is a subsidiary of the state-owned conglomerate China Everbright Group and manages over $8 billion of assets. The firm has offices in Hong Kong, Shanghai, Beijing, Qingdao and Shenzhen.