CITIC Private Equity Funds Management and CITIC Capital have both secured commitments from CITIC Securities, according to a statement from the brokerage house.
The securities firm will invest RMB200 million (€22 million; $31 million) in CITIC PE’s mezzanine fund, which was set up earlier this year with a hard-cap target of RMB6 billion, and RMB500 million (€57 million; $78 million) in CITIC Capital's RMB-denominated fund, which has a hard-cap target of RMB4.5 billion.
It is unclear when the two funds expect final closes as both fund managers could not be reached for comment by press time.
CITIC PE’s mezzanine fund will provide mezzanine financing for mergers and acquisitions, mineral resources and real estate. The fund had reportedly raised RMB3 billion by the end of September.
Also in September, media reports suggested that CITIC PE has launched a second RMB private equity fund targeting RMB12 billion to invest in industries including financials, retail, pharmaceutical, manufacturing, energy and materials. Its predecessor CITIC Mianyang Private Equity Fund grabbed headlines in January 2010 when it raised RMB9 billion. The firm also closed a USD fund on $990 million in May this year.