Chinese private equity heavyweight Hony Capital is targeting $2.6 billion for its latest USD-denominated fund, a LP source told PE Asia.
Hony declined to comment.
A spokeswoman for the firm confirmed the fundraising plan to PE Asia in June but did not elaborate on the fund size. Hony’s fourth USD fund closed on $1.4 billion in 2008.
If successful, it would mark the largest fund ever raised by a China-based private equity firm. The spot at the top of the podium is currently occupied by Hopu Investment, which raised $2.5 billion for its maiden fund in 2008 with backing from Singaporean sovereign wealth fund Temasek Holdings and Goldman Sachs.
The source said he believed Hony would be able to collect $2.6 billion eventually but it would take longer than originally planned. He noted that the firm was looking at a final close by the end of the year.
According to a Reuters report, a small portion of the fund would be used for overseas investment.
Although the firm has set out to be a China-focused manager, it made a Japan debut in July by investing ¥1.4 billion (€12.5 million; $17.8 million) for a 20 percent stake in Tokyo Stock Exchange-listed Tokai Kanko, which is mainly involved in accommodation and real estate development. In October last year, the firm became the largest shareholder of Singapore-listed medical device manufacturer Biosensors International by pouring in S$283.8 million.
Hony closed its second RMB fund earlier this year on the hard-cap target of RMB10 billion. Currently it has $4.4 billion of assets under management across four USD funds and two RMB funds.