Chinese private equity firm Hony Capital has closed its fifth USD-denominated fund on nearly $2.4 billion.
The fund, which had a target of $2 billion, was launched in September last year and had only one close in December. New LPs include a sovereign wealth fund from the Middle East, according to industry sources.
“Changes that were not found in foreign markets over the past two or three decades are taking place in China,” John Zhao, CEO of Hony, said in a statement. “The emergence of China provides rare opportunities for China’s PE insiders to explore a new way with Chinese characteristics based on our experience in the Chinese market.”
Although the fundraising environment has been dismal since the 2008 financial crisis, raising capital has apparently not been difficult for Hony.
In addition to the latest USD fund, Hony closed its second RMB fund last year on hard-cap of RMB10 billion. Limited partners included China’s Social Security Fund and the first commitment from insurance company China Life.
Hony raised RMB5 billion for its maiden RMB fund in 2008 and close to $1.4 billion for its Hony Fund 2008.