SAIF Partners targets $800mn for fifth China fund

The Hong Kong-based firm’s fifth vehicle will focus on growth investments in technology, healthcare and clean tech, following the investment strategy of its predecessor fund.

Private equity and venture capital firm SAIF Partners China has launched its fifth greater China fund with a fundraising target of $800 million, according to reports.

The fund has a hard-cap of $1 billion and is SAIF’s fifth vehicle focusing on growth investments in technology, healthcare and clean tech sectors in China.

SAIF Partners declined to comment on the fundraising.

The fund’s predecessor, SAIF Partners IV, is a 2010-vintage vehicle that closed on $1.2 billion. Its investors include the California Public Employees' Retirement System (CalPERS) which committed $120 million, the New York State Common Retirement Fund with $100 million and the State of Wisconsin Investment Board with $50 million. According to CalPERS’ latest fund performance review, the fund generated a net internal rate of return (IRR) of 9.6 percent and an investment multiple of 1.7x.

Investments from SAIF's fourth fund include antenna technologies company Mobi Development, drug research company Hua Xi and gas-fired power provide Beijing Jingneng Clean Energy.Earlier this month, China-based biopharmaceutical company Sinovac Biotech received a preliminary binding offer from SAIF Partners IV and its affiliates to take the company private.

The firm raised $1.1 billion for its Partners III fund in 2007. CalPERS reported that the fund produced an 8.2 percent IRR and a 1.7x return on its original investment.

In March 2015, SAIF Partners' spinout team SAIF India, closed its India V on $350 million, the largest vehicle to close in the first quarter of the year, and has drawn commitments from 27 investors, according to PEI’s Research & Analytics team. 

SAIF has backed e-commerce website Paytm, online ticketing portal Bookmyshow, online travel company Makemytrip and search engine provider Justdial, for which it generated a 12x return multiple after 80 months of being invested, as reported by Private Equity International.

SAIF currently manages over $4 billion in capital across both US dollar and renminbi funds.