BEIJING (Reuters) – New Horizon Capital, a China-focused private equity firm, said it had raised 1 billion ($146 million) for its first yuan fund to invest in defensive firms in a challenging economic environment.
“We’ve been looking at sectors and companies that will possibly overperform when the economic conditions turn better,” Cher-Teck Quek told Reuters.
The fund, which invests in enterprises in the growth stage, will also look at companies in industries such as pharmaceuticals, consumption, high-tech manufacturing and alternative energy, he added.
New Horizon Capital has raised two U.S. dollar funds totalling $600 million since it was founded in 2005. Its investors include JPMorgan Chase (JPM.N), Deutsche Bank (DBKGn.DE) and Singapore state investor Temasek Holdings [TEM.UL].
Its third U.S. dollar fund, which started fundraising last August, has collected $300 million so far and is expected to complete the process in the second quarter, Quek said.
Among its portfolio, at least three companies have filed applications for initial public offerings in China and Hong Kong, he added. ($=6.83 yuan) (Reporting by Michael Wei; Editing by Jacqueline Wong)