ClearVue beats $350m target for China consumer fund

The mid-market firm secured commitments from new investors including pension funds, endowments and consumer goods companies.

Shanghai-based private equity firm ClearVue Partners has raised $362 million for its latest fund exceeding its original target of $350 million, according to a statement.

ClearVue Partners II, which was launched by the firm in 2016, had a significant re-up rate from Fund I investors and also secured commitments from new global investors including pension funds, endowments and leading fast-moving consumer goods companies, a source with knowledge of the matter told Private Equity International.

The firm will target growth stage investments in consumer-focused companies – primarily in food & beverage, products and lifestyle and technology & services – in the greater China region. Typical investments range from $5 million and $30 million, the firm said on its website.

“Domestic consumption contributed more than 72 percent for the first three quarters of 2016 in China, which is reaching levels of mature western markets. The Chinese consumption story is the most excitement investment thesis globally for the next 10 years,” Harry Hui, founding managing partner of ClearVue, commented.

The firm raised $262 million for its debut fund ClearVue Partners I in February 2014, securing commitments from Fidelity Growth Partners, Emerald Hill Capital Partners, HarbourVest Partners, AUDA, JPMorgan, as well as a number of endowments and family offices, as previously reported by PEI.

Among its investments from Fund I include restaurant chain Outback Steakhouse, online pharmacy 111.com, and e-commerce platform GShopper.

ClearVue was founded in April 2012 by managing partners Harry Hui and William Chen. Hui was previously chief marketing officer of Pepsico Greater China, a president of Universal Music SE Asia, and a managing director of MTV North Asia. Chen was one of the founders of Billpoint, an Internet payments company acquired by eBay in 1999.

The firm also has a strategic relationship with Greenwich, Connecticut-based private equity firm L Catterton which focuses on buyouts of mid-market consumer businesses in North America.