Orchid Asia Seals $650M For Fifth Fund

Orchid Asia has raised $650 million for its fifth China private equity fund, Orchid Asia V, LP, Reuters reported. The fund netted investments from roughly 60 investors from across the US, Europe and Australia. Orchid Asia focuses on the Chinese consumer sector and the specialty manufacturing sector. With the latest fund, the firm now has $1.4 billion under management.

(Reuters) – Investment group Orchid Asia said on Tuesday it has raised $650 million for its fifth China private equity fund after the fund was heavily over-subscribed, underscoring strong foreign interest in Chinese assets despite a tough fundraising climate.

The Orchid Asia V, L.P, which was 35 percent over-subscribed, attracted about 60 investors from regions such as the United States, Europe and Australia in its final closing, bringing the firm’s total assets under management to $1.4 billion, Orchard Asia said in a statement.

“China is still on top of many LP’s radar, but it’s still a very tough fundraising market out there,” Trevor Chan, director of marketing, said in the statement.

“There’s no doubt all LPs are now much more thorough in their time and attention to due diligence than ever – post financial crisis.”

LP, or limited partner, refers to an investor in a private equity or venture capital fund.

China is attracting private equity investors with its booming IPO market and high stock valuations, with 50 China-focused funds raising a combined $14.54 billion in the first half, doubling the amount raised during the previous six months, according to consultancy Zero2IPO Group.

Orchid Asia focuses on investing in Chinese companies in industries such as consumer services and products, as well as speciality manufacturing and services.

The firm has invested in 45 companies and exited or partially exited 22 of them, with another eight to 11 potential IPOs and trade sales in the pipeline over the next 12 months, the company said.