CITIC Capital surpasses target with $925m fundraise

Two weeks after an affiliate division raised private equity's largest-ever RMB fund, the sovereign wealth-backed fund manager has closed its second buyout fund.

Alternative investment firm CITIC Capital has raised $925 million for its second buyout fund, CITIC Capital China Partners II (CCCP II), surpassing its $750 million target.

CCCP II will primarily target buyout and take-private opportunities in the consumer products and manufacturing sectors.

The fund held a first close on $500 million in February 2009 and is more than twice the size of its fully invested predecessor, which blew past its $250 million target to raise $425 million in 2006 from investors including CITIC Capital Holdings, Singaporean sovereign wealth fund Temasek, GE Capital, Siguler Guff, CDC, Orix and Sumitomo Trust Bank.

Fund II +raised capital from existing and new investors, Zhang Yichen, CITIC Capital’s chief executive, said in a statement that did not disclose the name of LPs.

Based in Shanghai, CITIC Capital’s China private equity team has previously invested in pharmaceutical company Harbin Pharmaceutical Group; hydraulic crawler crane maker Fushun Excavator; auto parts maker China United Air Systems and confectionery company Guan Sheng Yuan.

CITIC Capital is a part of CITIC Group, one of China’s largest financial conglomerates. It is owned by Chinese sovereign wealth fund China Investment Corporation as well as CITIC Group subsidiaries CITIC International Financial Holdings and CITIC Pacific. CITIC Capital also has private equity funds focused on investing in Japan and the US and manages more than $3 billion in capital.

Last month, Beijing-based CITIC Private Equity Funds Management, another CITIC Group unit, raised RMB9 billion ($1.3 billion; €966 million) for its debut fund, making it the largest RMB fund to be raised in China to date.