CMC Capital racks up more than $950m for third fund

CMC Capital has raised more than $950 million for its third private equity fund.

CMC Capital has raised more than $950 million for its third private equity fund. CMC Capital Partners III’s limited partners include pension funds, sovereign wealth funds, insurance companies, financial institutions, endowments, fund of funds and family offices. Skadden acted as legal counsel to the fund.

PRESS RELEASE

SHANGHAI, BEIJING, and HONG KONG, Feb. 24, 2020 /PRNewswire/ — CMC Capital Partners (“CMC Capital”, www.cmccap.com), a leading private equity firm in China, announced today that it has recently raised more than US$950 million in commitments for its third US dollar private equity fund, CMC Capital Partners III (the “Fund”), well surpassing its original target fund size. The Fund has attracted commitments from leading global institutional investors, including pension funds, sovereign wealth funds, insurance companies, financial institutions, endowments, fund of funds (FOFs), and family offices. The investor base is globally distributed across North America, Europe, the Middle East, and Asia Pacific.

CMC Capital will continue its strategy of investing in leading innovative growth companies in media & entertainment, technology, and consumer sectors. With the closing of this new fund, CMC Capital now manages over $2.5 billion in commitments across five funds.

“We are very appreciative of the trust and support of our limited partners globally,” said Ruigang Li, Founding Partner of CMC Capital Partners. “Our limited partners represent some of the most experienced top tier institutional investors in the world. The successful closing of the new fund reinforces our long-term presence in China and the expansion of our investment platform in the local market. We are grateful for our partners’ recognition and endorsement of our unique vision and expertise in nurturing industry leaders in the region and the outstanding, decade-long investment track record we have achieved so far.”

CMC Capital has made over 50 investments in the growth and expansion stage across its target sectors, including many leading players such as IMAX China (SEHK:1970), Star TV, iQIYI (Nasdaq: IQ), Bilibili (Nasdaq: BILI), Mango TV (SZ:300413), Kuaishou, NetEase Music, CAA, Eleme, Manbang Group, Mei Cai, Dingdong, Danke, Hongjiu Fruit, Leqee, Perfect Diary, Neobio, Yuanfudao, Gaosi Education and Zhangmen. Amongst all investments, eight companies have completed IPOs, and fifteen investments have been fully or partially realized. Its first US dollar fund (2014 vintage) achieved the significant milestone of crossing DPI of 1x and returning full paid-in capital to its investors in 2019.

In the past ten years, CMC Capital has formed and refined its investment philosophy to be able to identify and underwrite new growth opportunities in the market continuously. They have also established a disciplined portfolio management system that ensures support to portfolio companies as well as managing the performance of the fund. “The decision to invest in a new subsector is not an opportunistic one, it is backed by strong conviction established through long term coverage and monitoring of the developments in the sector.” says Ruigang Li. “As to our portfolio companies, CMC Capital plays more than just the role of a financial investor, but our unique platform is always ready to support the company in every important stage in their development.”

Since its first RMB fund in 2010, CMC Capital has transformed from a media sector focused fund to a full market-oriented private equity platform that manages both RMB and US dollar capital, covering key growth sectors of media & entertainment, technology and consumer. It has attracted commitments from top institutional investors globally and funded some of the best-in-class portfolio companies. CMC believes the most crucial reason behind its success is the quality and professionalism of the CMC Capital team.

CMC Capital currently has a team of more than 20 investment professionals. All of the senior team members have rich investment experience and operational experience, and can provide valuable advice and assistance to entrepreneurs. Under the leadership of Founding Partner Ruigang Li, CMC Capital’s core management team, Alex Chen (Partner & Chief Investment Officer), Peter Li (Partner) and Wei Choy Lee (Partner & Chief Operating Officer), are widely recognized in their respective focus areas and within the private equity investment community.

“We are honored to have partnered with many outstanding companies through the cycle and grown together in the past ten years,” Ruigang Li adds. “In our focused industries, China is gradually playing a more and more important role in the global market. We believe that with our team’s rich investment and operational experience, extensive network of resources, in-depth understanding of the market, and unique regulatory navigation capabilities, we will continue to explore high-quality investment opportunities, help more companies to achieve value enhancement, and create substantial returns for our investors. We are committed to establishing mutually beneficial partnerships with portfolio companies in the long run, by providing not only long-term capital support, but also systematic post-investment value-add to help with their operational improvement, creating strategic value for the development of our portfolio companies. ”

About CMC Capital
CMC Capital Partners, founded and chaired by Mr. Ruigang Li in 2010, is a leading equity investment firm focusing on media & entertainment, technology, and consumer industries with office presence in Shanghai, Beijing, and Hong Kong. CMC Capital currently manages three USD funds and two RMB funds, with over $2.5 billion in assets under management.

CMC Capital is committed to becoming the preferred investment partner for top entrepreneurs in China. Since its establishment, CMC Capital has invested in over 50 leading companies across target sub-sectors such as film and television, sports, interactive entertainment, internet media, social networks, e-commerce, local services, logistics, supply chains, artificial intelligence, education, lifestyle, and emerging consumer sectors. More than 10 of the companies were listed in either the Chinese or United States stock markets or have been exited through mergers and acquisitions. Well-known companies invested in by CMC Capital include IMAX China (SEHK:1970), Star TV, iQIYI (Nasdaq: IQ), Bilibili (Nasdaq: BILI), Mango TV (SZ:300413), Kuaishou, NetEase Music, CAA, Eleme, Manbang Group, Mei Cai, Dingdong, Danke, Hongjiu Fruit, Leqee, Perfect Diary, Neobio, Yuanfudao, Gaosi Education and Zhangmen.

Skadden acted as legal counsel to the Fund.