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Citic Securities Closes $1B Dollar-denominated Fund

The private equity unit of China’s Citic Securities Co. has closed a dollar-denominated fund worth roughly $1 billion, Reuters reported. The CPEChina Fund inked $990 million from 39 overseas limited partners, the firm said in a statement, though it declined to name specific LPs. The fund will focus on Chinese companies in industries including manufacturing, technology, financial institutions and services, energy, resources, healthcare, consumer goods and retail, Reuters reported.

(Reuters) – The private equity unit of Citic Securities Co , China’s biggest listed brokerage, announced on Monday the closing of a dollar-denominated fund worth nearly $1 billion, underscoring huge foreign demand for China assets.

The CPEChina Fund secured $990 million of committed capital from 39 overseas institutions including sovereign wealth funds, pension funds, endowments, family offices, PE) said in a statement.

The fund, which was substantially over-subscribed, will focus on investments in Chinese companies, and will support their international acquisitions.

China’s major brokerages including Citic, China International Capital Corp and Haitong Securities have in recent years set up private equity units to broaden their revenue streams and reduce reliance on trading commission incomes.

Citic PE, established in 2008, raised 9 billion yuan ($1.4 billion) late last year in its first fund, the Citic Mianyang Private Equity Fund, and has since closed about 30 deals worth a total of 10 billion yuan, according to its statement.

The Mianyang fund has invested in e-commerce website Happigo Ltd and liquor maker Shanxi Xifeng Liquor Group Co Ltd, according to Reuters data.

The firms’ portfolio companies also include Chinese liquor maker Kuaijishan Shaoxing Wine, financial data services provider Wind Info and Beingmate, the top domestic brand in China’s infant food market.

Citic PE said that its new fund will mainly invest in industries including manufacturing, technology, financial institutions and services, energy, resources, healthcare, consumer goods and retail.

The fund has attracted investors from North America, Europe, the Middle East and Asia, reflecting strong demand for China exposure.

About $17 billion of private equity funds have been raised in Asia so far this year, of which $11.9 billion, or 70 percent, was raised in China. ($1 = 6.493 Chinese yuan) (Reporting by Samuel Shen, Stephen Aldred Jacqueline Wong)