Orchid Asia closes $420m fund

Two years after closing a $180 million fund shy of its target, the Hong Kong-headquartered firm’s fourth fund has closed above target at its hard cap.

Orchid Asia Group Management, one of the first firms to target growth equity opportunities in Asian markets, has closed its fourth fund on its hard cap at $420 million (€286 million).

As opposed to its third fund, which closed in 2006 at $20 million below its $200 million target, Fund IV was “significantly oversubscribed” and surpassed its $350 million target, the firm said.

It did not disclose its limited partners except to say the capital commitments represent a “global pool of private capital sources including independent private banks, university endowments, insurance companies, investment institutions, strategic individual capitalist and high net worth family offices”. Limited partners in prior vehicles include Liechtenstein-based fund of funds Castle Private Equity, Italian investment firm CDB Web Tech and Invesco Techmark Enterprise Trust/Strathdon Investments.

Orchid Asia says it has been investing in China for more than 16 years. Its track record includes investments in Chinese discount travel reservation company Ctrip.com, a deal that yielded a 20x return multiple, and Chinese online auction company Eachnet, whose sale to eBay resulted in a 5x return on equity.

The firm has offices in Hong Kong, Shanghai, Beijing, Guangzhou and San Francisco.