China-focused Orchid Asia has closed its fifth fund at a hard-cap of $650 million, six months after it first closed on $327 million in January this year and one year after its official launch in July 2010.
According to a statement, Orchid Asia V was heavily oversubscribed at more than 35 percent above its target size, but the firm maintained its hard-cap at $650 million. The fund raises the firm’s total asset under management to $1.4 billion.
Around 60 limited partners committed to the fund, including US, Europe and Australian retirement/pension funds, insurance companies, family offices and global funds of funds.
An industry source told PE Asia earlier this year that the fund attracted LPs including HarbourVest Partners, JPMorgan Asset Management, Qantas Airlines, United Overseas Bank of Singapore, Development Bank of Japan, Macquarie, Australian Reward Investment Alliance (ARIA), California Endowment, Alaska Pension Fund, Nordea Life Insurance and Portfolio Advisors.
The fund will make growth capital investment of between $15 million and $45 million in the consumer products and services, technology and media, retailing, manufacturing and healthcare sectors.
In January this year, the firm acquired a controlling interest in Shanghai Saming Foodstuff for a reported RMB220 million (€25.1 million; $33.4 million). Chinese media suggested the acquisition gave Orchid Asia a 97 percent stake in the Chinese snack maker.
The investment was made from Orchid Asia IV, which closed on its $420 million hard-cap in February 2008, surpassing its $350 million target. The firm’s third fund closed on $180 million in 2006. 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.
With offices in Hong Kong, Shanghai, Beijing and Guangzhou, the firm has to date invested 45 companies and exited or partially exited 22 of them. According to the statement, there are another eight to 11 potential IPOs and trade sales in the pipeline over the next six to 12 months.