China.com Inc., a Chinese online portal listed in Hong Kong’s Growth Enterprise Market, revealed in a regulatory filing that it has agreed to sell its stake in a New Horizon Capital fund to AlpInvest Partners.
China.com is selling its entire interest in New Horizon Capital IV, L.P. for US$516,000 in cash, a price roughly on par to what China.com has shelled out.
China.com subscribed to the New Horizon Capital fund in 2011. Approximately US$516,148 has been drawn while no capital has been returned back to China.com as of May 30, 2013.
New Horizon Capital IV, L.P. was established in April 2011 to invest in the consumer, life science and healthcare, alternative energy and manufacturing industries in China.
China.com’s total commitment to the fund is US$4 million, which will be taken up by AlpInvest Partners after the deal closes.
Even though this deal is small in size, industry watchers predict more LPs will trade their stakes in Chinese private equity firms as IPO markets globally remain unwelcoming to Chinese companies.
The transaction is expected to close before July 31, 2013 if additional regulatory and legal requirements are met.
Co-founded by the son of former Chinese Premier Wen Jiabao in 2005, New Horizon Capital is a Chinese private equity fund known for its intimate ties with China’s governments and business elites.
AlpInvest Partners is a private equity asset manager with US$48 billion under management as of March 31, 2013. With offices in Amsterdam, New York, Indianapolis and Hong Kong, the firm invest in private equity fund, secondaries and co-investment opportunities. AlpInvest is controlled by The Carlyle Group.