Cowin Capital to raise debut USD fund

The fund has a reported target of $100m to $150m and is expected to start fundraising next month or in September.

Chinese venture capital firm Cowin Capital is looking to raise its debut USD-denominated fund with a reported target of $100 million to $150 million.

Lily Huang, managing director and partner at the Shenzhen-based firm, confirmed her firm’s plans but declined to give further information.

According to a Reuters report, the fund is expected to start fundraising in August or September and will focus on consumer sectors and emerging industries.

Last month, the firm closed its South Sea Growth Fund V on RMB2.5 billion. It came just nine months after South Sea Growth Fund IV closed on RMB1 billion in September last year.

While traditional USD fund managers are raising RMB funds, more local GPs like Cowin with only RMB funds under their belt are also setting sights on USD funds.

Examples include Shenzhen Fortune Venture Capital, which manages 10 RMB funds and a $66 million USD fund, and Kaiwu Capital, which is targeting $200 million for an USD vehicle while it’s in the market for its maiden fund with a target of RMB1 billion.

As China’s young private equity market lacks an abundance of institutional GPs, Conrad Yan, Hong Kong-based partner at placement agent Campbell Lutyens, said recently that RMB GPs would learn international best practices as they raise USD funds. In addition, the alignment of interest between GPs and LPs would sustain more in the long run in an USD fund structure, he added.