China-Based PE Player, China Science and Merchants, Seeking $1 Billion for Newest Fund

China Science and Merchants, an 11-year-old private equity player that has raised more than $2 billion and invested in more than 100 China-based startups, is targeting $1 billion for its newest fund. It has appointed EME Capital as its fundraising coordinator.

PRESS RELEASE:

China Science and Merchants (“CSM) has today launched a global capital raise for its first international US Dollar denominated fund which will make private equity investments in China and has appointed EME Capital as global co-ordinator for the fundraising. CSM is initially targeting US$1 billion for this fund.

Professor Shan XianShuang, Chairman and Founder of CSM said, “This fund will allow, for the first time, international investors to invest alongside CSM’s RMB denominated funds on a pari passu basis. CSM’s respected management team and Chinese identity will mean that high quality Chinese private equity investment opportunities will now be available to foreign investors. I am confident that our network and reach will continue to uncover hidden value across China.”

The Honourable Robert Hanson, son of the late industrialist Lord Hanson and a General Partner in CSM’s International Fund said, “I have known the principals of CSM for the past fifteen years and have worked specifically with CSM since 2003; over the last decade they have been right at the forefront of Chinese private equity. The great advantage CSM has in the Chinese market is their strong deal origination and the collaborative approach they adopt to managing portfolio companies which involves them working closely with both management and key stakeholders. This is far removed from Western conventions of absolute control engineered through buy-outs which do not always work well in China.”

EME Capital is the global co-ordinator for the fundraising and Ahmad Salam, EME Capital’s Managing Partner, said, “Private equity in China is still in its early stages but the opportunities there today are hugely significant and exciting. CSM has the history and standing to unlock these opportunities for foreign investors in ways that only a leading domestic firm can and it is a privilege for EME Capital to introduce CSM to international institutions.”

About China Science and Merchants

China Science and Merchants (“CSM”):  CSM was established in 2000 and is a pioneer in the Chinese private equity industry with over US$2billion under management. CSM has ten offices in China and employs nearly 200 professional staff. Key to CSM’s success is its unique ability to bring together government officials, industry experts and leading business executives. CSM has made over a hundred investments in China and has achieved more exits than any other domestic Chinese firm.

About EME Capital

EME Capital Limited (“EME Capital”):  EME Capital is a financial advisory firm authorised and regulated by the FSA and has offices in London and Dubai. EME Capital is led by four partners who have over a hundred years of investment banking and private equity experience between them. EME Capital specialises in providing global clients with strategic and financial advice on the structuring and financing of high growth businesses.