New Horizon closes RMB1bn fund

The China-focused fund will invest in ‘smaller players’ in the pharmaceuticals, consumption, high tech manufacturing and alternative energy sectors. The firm is also raising another fund targeting a $750m close in the second quarter.

China-focused private equity firm New Horizon Capital has closed its first RMB-denominated fund on RMB1 billion (€110 million; $146 million), said Henry Huang, director of finance at New Horizon.

The fund will invest in growth stage companies in sectors such as pharmaceuticals, consumption, high tech manufacturing and alternative energy. “Investments will be focused on smaller players in China,” said Huang.

New Horizon: focusing on smaller players

The firm is also currently raising its third USD-denominated fund, New Horizon Capital III, which is targeting a close on $750 million in the second quarter of 2009 and has a hard cap of $1 billion, according to Huang.

New Horizon Capital III will invest approximately $50 million per deal for minority stakes with significant influence. It already has a pipeline of deals lined up, Huang added.

Investors in the US dollar-denominated fund include investment adviser Morgan Creek Capital Management, New York-headquartered investment firm Siguler Guff and a few returning investors. UBS is acting as placement agent for the fund.

Since New Horizon was founded in 2005, it has raised two USD-denominated funds totalling $600 million.