China Everbright holds first close for global fund

The firm has raised $264m for its latest vehicle, which will invest in advanced manufacturing, transport and agri-technology companies in the US and Europe.

Hong Kong-headquartered China Everbright Limited (CEL) has held a first close of $264 million on its CEL Global Investment Fund, according to a statement.

The fund, which launched in April 2016 and has a target of about $500 million, will invest in equities and equity-linked securities of US and European companies that are targeting China. Favoured industries include manufacturing, advanced transportation equipment, advanced agricultural products and technologies, as well as consumer goods, media, and healthcare.

The firm expects to hold a final close by end 2017, according to a spokesperson.

Shengyan Fan, head and managing director of CEL's Mergers & Acquisitions department, said the fund will enable overseas portfolio companies to bring their products and technologies to China to tap opportunities in the local market.

Investments from the fund include Michigan-based manufacturer Burke Porter Machinery, and Chicago-headquartered precision surfacing solutions company Lapmaster Group Holdings.

China Everbright is also currently investing its $200 million China-Israel vehicle, Catalyst CEL Fund, which targets Israel-based growth stage companies seeking expansion in China. Two investments have been made so far from Catalyst CEL: $25 million in 3D printing company XJet and $10 million in precision engineering company Lamina Technologies.

Limited partners in CEL’s funds include Axiom Asia Private Capital, MinHang district of Shanghai Municipal Government, and Wuxi Guolian Development Group, according to PEI data.

CEL, which manages over $8.5 billion of assets, is a subsidiary of the state-owned conglomerate China Everbright Group. The group’s fund management business spans 31 funds across private equity, venture capital, mezzanine, and secondaries, with an AUM of more than $49 billion, according to CEL.