CITIC Capital Raises Second Fund

HONG KONG (Reuters) – CITIC Capital, the flagship investment arm of CITIC Group, China’s No.1 financial conglomerate, said on Monday that it had completed raising $925 million for its second China buyout fund.

The closing size was bigger than the firm’s original target of $750 million and the fund, named CITIC Capital China Partners II, will target buyout and privatisation investments in Chinese companies driven by domestic economic growth, particularly in the consumer products and manufacturing sectors.

“We are delighted by the strong support we have received from both existing and new investors,” said Zhang Yicheng, chief executive of Hong Kong-headquartered CITIC Capital.

CITIC Capital is owned by China Investment Corp [CIC.UL], China’s sovereign wealth fund, CITIC International Financial Holdings Limited and CITIC Pacific Ltd (0267.HK).

The firm currently manages over $3 billion of capital with investment focuses on traditional private equity deals, real estate, hedge funds and asset management.