Beijing-based HAO Capital has partially-exited portfolio company PAX Global Technology, a Hong Kong-listed company, by selling 15 percent in a block trade worth $80 million, according to a source with knowledge of the matter.
Shenzhen-based PAX is China's largest producer of electronic fund transfer point-of-sale terminals in terms of sales volume, according to HAO.
The firm initially invested in PAX in 2007. It sold part of its stake when the company listed in Hong Kong in December 2010.
The firm still retains a 7.5 percent stake, the source said, adding that the total value of realised and retained stake gives an overall gross multiple to date of 4.8x.
In a separate transaction last August, HAO increased its investment by $20 million in LP Amina, a China-based company that outfits coal plants with emission reduction equipment, Private Equity International reported earlier.
At the time of that deal, the firm’s $400 million second fund with a 2008 vintage, was more than half invested. HAO is expected to raise its third US dollar-denominated fund, with a likely target of $500 million, in 2014, the source said.
Founded in 2005, HAO Capital provides growth capital to Chinese companies in the consumer goods, healthcare, light industrial and clean-tech sectors. It manages total assets of $500 million across two funds, according to PEI’s Research & Analytics division.