China Science & Merchants Plans $1B Fund

Chinese buyout shop China Science & Merchants is planning a $1 billion fund that will be the first open to non-Chinese investors, Reuters reported Thursday. EME Capital is the global coordinator and advisor on the fund-raising.

(Reuters) – Chinese private equity firm China Science & Merchants (CSM) announced a global fund-raising for a new $1 billion fund that will be its first one open to non-Chinese investors and is aimed at raising CSM’s profile overseas.

EME Capital is the global co-ordinator and advisor on the fund-raising, and the companies said on Thursday that CSM had already received positive feedback from Gulf-based firms over the new fund and would meet European investors in November.

“Whilst CSM is one of the leading private equity firms in China, we have not until now considered approaching international investors for capital,” CSM general partner Shan XianShuang said in a statement.

“We are delighted with the quality of the meetings we have had and the strong and positive response we have received from investors,” he added.

The CSM team features British entrepreneur and financier Robert Hanson who is also involved in the new fundraising.

CSM was founded in 2000 and the company’s website states that it owns stakes in dozens of Chinese firms including SumaVision Technologies , Spreadtrum Communications and Huatai Insurance.

It currently has some $2 billion of assets under management, and the new fund would bring its funds under management up to $3 billion.

CSM, which traditionally targets equity capital stakes of between $20-$100 million for each transaction, will invest the new $1 billion fund in Chinese companies in both the private and public sectors.