China Everbright eyes $500m global fund close

The Hong Kong-based firm has already deployed $300m from the fund but wants to garner an extra $200m to hit its target before the end of the year.

China Everbright, a Hong Kong-based private equity firm that has its roots in merchant banking in greater China, has said it wants to raise additional capital before holding a $500 million final close before the end of the year.

The firm set a $500 million target for its Global Investment Fund, which it launched in early 2016. The firm previously held a first close on $264 million in April last year and a second close on $294 million in December. The firm is targeting returns of more than 20 percent for the fund, as previously reported by Private Equity International.

Limited partners in previous CEL funds include Focus Media, Wuxi Guolian Development Group and University of Oklahoma Foundation, according to PEI data.

Speaking at the firm’s results briefing in Hong Kong on Wednesday, Chen Shuang, chief executive at CEL said the firm has seen already invested this capital after seeing increasing opportunities in cross-border M&A in “consumer-driven upgrades such as mobile video, new energy cars and fintech and as well as investments in the high tech sector”.

Capital from the fund has been invested in Michigan-based intelligent machine manufacturer Burke Porter Machinery and Chicago-headquartered precision surfacing solutions company Lapmaster Group Holdings.

The Global Investment Fund focuses on industries “important to the economic transformation and sustainable development of China”, including advanced manufacturing, advanced transportation equipment, advanced agricultural products and technologies, clean energy and healthcare.

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.

As of June 2017 the firm’s fund management and principal investment business posted a profit of HK$987 million ($126 million; €105 million) in the first half of 2017, up 73 percent from last year.