State-backed China Everbright, a diversified financial conglomerate, in partnership with four enterprises from Jiangyin City in Jiangsu Province, has established Everbright Jiangyin New Energy Industry Investment Company to raise a private equity fund focused on new energy, resources and related enterprises in China.
The firm is seeking to raise RMB3 billion (€323 million; $439.4 million) for the Everbright Jiangyin New Energy Fund and has raised RMB1 billion for its first close.
This fund is Everbright’s third partnership with Wuxi and Jiangyin within the last six months, demonstrating the firm’s “increasing confidence in the cities’ economic potential”, Chen Shuang, chief executive officer of Everbright, said in a statement.
Before this, Everbright had established two RMB500 million venture capital funds in partnership with Wuxi and Jiangyin cities respectively. Those two funds are focused on companies in sectors with high growth potential such as the high-tech industry. It also manages a private equity fund launched in partnership with Beijing Zhongguancun.
In August 2009, the firm formed a joint venture with Australia’s Macquarie Group to raise two Greater China-focused infrastructure funds. That joint venture aims to raise $1.5 billion from domestic and international investors for an RMB fund and a US dollar fund, which will have identical mandates and co-invest. Fundraising for these vehicles is progressing smoothly, Everbright said in its statement.
Everbright is also currently in the market for a private equity real estate fund.
Hong Kong-listed Everbright’s operations include direct investments, asset management and investment, corporate finance and wealth management. The company has offices in Hong Kong, Shenzhen and Beijing. Its parent company is China Everbright, a state-owned enterprise.