Orchid Asia V holds first close on $327m

The China-based firm has attracted more than two dozen investors for its fifth fund, targeting $650m.

China-based private equity firm Orchid Asia has collected just over half the $650 million target for its fifth fund, an industry source told PE Asia.

Orchid Asia V has attracted more than two dozen 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.

Launched in July last year, Orchid Asia V had an original target of $600 million. Given the strong demand, according to the source, the firm has raised and capped the target at $650 million. It has held a first close on$327 million.

Orchid Asia declined to comment.

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. While it has an Asian remit, the fund will focus primarily on investments in China.

Last month, 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.

Orchid Asia has offices in Beijing, Shanghai, Guangzhou and Hong Kong.