Hong Kong-based firm Spring Capital Asia has invested up to $10 million for a substantial minority in Shanghai Insuring Polymer Materials, a polymer maker.
The capital injection will allow the company to increase production capacity, further develop sales network in target cities and meet its incremental working capital requirement, said Xin Chunhua, president and chief executive officer of Insuring, in a statement. It also gives Chan a seat on the company’s board.
The investment was made out of the firm’s debut fund, Spring Capital Asia Fund, which currently has two more Chinese deals in the same space under exclusivity as well as a strong pipeline of deals, “particularly in cleantech and healthcare”, Vincent Chan, chief executive of Spring Capital, said in an interview.
The fund has already raised $103 million of its $200 million target. It makes lower mid-market investments in Chinese growth companies in the healthcare and pharmaceuticals, cleantech, and consumer, professional and business services sectors.
Spring Capital was set up in November 2007 and opened its second office in Shanghai in July 2008.