CITIC Capital collects $1.6bn for its third China fund

The Hong Kong-based firm completed fundraising for its US-dollar denominated portion but is still in market to raise the yuan tranche.

CITIC Capital Partners has wrapped up fundraising for the US dollar-denominated pool of its latest China-focused vehicle, collecting $1.57 billion from its investors against a $1.2 billion target,  Private Equity International  has learned.

The firm launched CITIC Capital China Partners III in May last year, seeking to corral a combination of US dollar and yuan with a combined target of $2 billion.

The firm is still raising capital for the yuan-denominated portion,  PEI  understands.

The fund has a high re-up rate, with some of its limited partners doubling the size of their commitments, as previously reported. Pension funds, funds of funds and sovereign wealth funds made up the bulk of Fund III’s investor base.

Capital raised from Fund III will be invested in companies focused on TMT, healthcare, education and financial services. The firm will also target cross-border deals in the US, Europe and Australia.

In May this year, CITIC Capital teamed up with Shanghai-listed company Humanwell Healthcare to  acquire the sexual wellness business of Australian company Ansell for A$800 million ($600 million; €534 million). The deal is expected to be completed in September.

The firm manages $20 billion of assets across private equity, real estate and structured finance for its international and Chinese investors including the Canada Pension Plan Investment Board, National Council for Social Security Fund of China and The Dietrich Foundation, according to PEI data.