CITIC closes China fund on $113m

The Hong Kong-based firm has made a final close on its latest China-focused vehicle, which was targeting $150 million.

CITIC Capital has made a final close on $113 million on its latest fund, CITIC Capital Venture Partners, according to a statement from the firm.

The fund was targeting $150 million, according to PEI’s Research & Analytics division. Fundraising for China has been difficult in part due to lack of realisations. The domestic IPO market has been under a regulatory freeze since late 2012 and has no firm date to re-open. In addition, Hong Kong’s stock market has provided a weak reception for listings this year.

The China-focused fund will target high growth small-to-medium-sized enterprises in sub-sectors of clean technology, consumer and IT as well as new emerging industries.

Vertex Asia Growth, a wholly-owned subsidiary of Temasek Holdings, and Enspire Capital of Singapore are among the limited partners.

“China’s unique mix of increasing domestic demand, favorable demographics, and the potential of huge efficiency gains across various industries should continue to provide interesting opportunities for investors with strong value propositions and solid investment theses,” said Jeffrey Zeng, CITIC Capital’s senior managing director and managing partner of CCVP, in the statement.

Hong Kong-based CITIC Capital specialises in private equity and real estate investments in China, the US and Japan. It manages $4 billion in capital. 

The firm is owned by China Investment Corporation (CIC), China’s sovereign wealth fund, and the CITIC Group. In August 2012, Qatar Holding, a Qatar Investment Authority investment company, purchased almost a quarter of CITIC Capital.