New Horizon nearing $750m final close

The China-focused firm has changed the target for its third USD-denominated fund twice since fundraising began in 2008.

New Horizon Capital has almost finished fundraising for New Horizon Capital III, three sources have confirmed with PEO's sister publication PEI Asia. The fund is targeting commitments of $750 million and will likely see a final close on that amount in the next couple of months, the sources said.

New Horizon Capital declined to comment.

The firm entered the market in the latter part of 2008 with a target of $1 billion and saw a first close in November of that year, according to two of the sources. The firm lowered the target of the fund to $600 million because of market conditions, although increased interest from limited partners in late 2009 led the firm to increase its target to $750 million.

The firm is scheduled to officially close its fund in April but is likely to do so before that, a source said. New Horizon III will invest about $50 million per deal on average and will seek to acquire significant minority stakes.

Temasek and Softbank, two of the early investors in New Horizon, are among the backers of Fund III as well, a source said.

Prior to this fund, New Horizon managed $600 million across two USD-denominated funds. In January 2009, the firm also closed its first RMB-denominated fund on RMB1 billion (€104 million; $146 million). That fund makes growth investments in the pharmaceutical, consumption, high tech manufacturing and alternative energy sectors.

Since its inception in 2005, New Horizon has made 24 investments in China. Chinese Premier Wen Jiabao’s son, Wen Yunsong, is one of the co-founders of the Beijing-based private equity firm.