CITIC Capital Closes $113M China Venture Fund

CITIC Capital Holdings Ltd. (CITIC Capital) says its debut China venture fund, CITIC Capital Venture Partners, has reached final closing of US$113 million.

The fund originally targeted to raise US$150 million.

It is among numerous fund managers raising funds short of their targets.

TPG Capital is downsizing its sixth pan-Asian fund to US$3.5 billion from US$4 billion. RRJ Capital completed a US$3.5 billion second fund in February, US$1.5 billion less than its US$5 billion original target.

CITIC’s venture fund has attracted international institutional investors including Vertex Asia Growth Ltd, a wholly-owned subsidiary of Temasek Holdings, and Enspire Capital.

The fund will target high growth small and medium enterprises, with a focus on clean technology, consumer and IT, as well as new emerging industries.

It will also explore opportunities in those enterprises that have sound business models and the potential to improve their operational efficiencies.

"China’s unique mix of increasing domestic demand, favorable demographics, and the potential of huge efficiency gains…should continue to provide interesting opportunities," says Jeffrey Zeng, CITIC Capital’s senior managing director and managing partner of CCVP. "The market environment has been challenging, but I am confident that we are well positioned to continue our success."

Since founding the fund, CITIC Capital Venture Partners has continued to strengthen its team. It now has four partners and eight investment professionals with deep industry background.

Founded in 2002, CITIC Capital Holdings Ltd. is an alternative investment management and advisory company. The firm manages over US$4 billion of capital from a diverse group of international institutional investors.

Core businesses include Private Equity, Real Estate, Structured Investment & Finance, Asset Management and Venture. CITIC Capital currently employs over 200 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Tokyo and New York.

It is owned by China Investment Corporation, China’s sovereign wealth fund, and CITIC Group and Qatar Holding LLC.