Orchid Asia closes $920m China fund

The firm’s sixth growth capital vehicle was 'heavily oversubscribed'

China-based Orchid Asia has made a first and final close on its sixth private equity vehicle, raising $920 million, according to a statement.

The firm, which invests in Chinese companies, was “heavily oversubscribed” attracting potential commitments of over $1.3 billion.

Public and private, pension funds, insurance companies and endowments accounted for the vast majority of the fund’s investor base, the firm enjoying strong support from existing investors that re-upped from Fund V, a $650 million vehicle with a 2010 vintage.

The new vehicle was launched in March this year with a $750 million target, intending to invest in Chinese businesses that can expand across Asia Pacific. Since inception, the firm has invested in around 70 companies and has exited, including partial exits, over 38 companies.

In September last year, Orchid joined The Carlyle Group and European private equity firm Milestone in backing the $203 million Hong Kong initial public offering of Tenwow International Holdings, Private Equity International reported earlier.

Tenwow, a food and beverage producer and distributor in China, raised HK$1.58 billion (€153 million; $203 million) via the IPO, with the cornerstone investors buying $92.3 million.

Despite a general feeling of dissatisfaction from LPs with regards to Asia funds since 2012, a number of firms have successfully raised capital for the region in recent months.

CVC Capital Partners, TPG, NewQuest Capital Partners and The Riverside Company all successfully closed Asia Pacific funds during the first half of 2014, with Carlyle expecting to close its $3.5 billion Asia fund this quarter, co-founder David Rubenstein said last month.