Greater China-Focused PE Firm DCP Capital Hits Final Close For Debut USD Fund At $2B

DCP Capital, a Greater China-focused private equity firm led by former KKR and Morgan Stanley executives, announced on Tuesday that it has reached the final close for its debut USD-denominated fund at over US$2 billion.

The new fund will primarily invest in industries that emerged amid the trend of "consumption upgrade and industrial integration" in Greater China, said DCP Capital in a statement obtained by Chinese online publication PEdaily. Specially speaking, the fund will finance companies in consumer goods, industrial technologies, healthcare and medical treatment, food safety, commercial services, and financial services.

DCP Capital said the new fund will adopt investment strategies including mergers and acquisitions (M&A) for companies’ controlling stakes, and equity investments in growth companies for minority stakes.

Along with the maiden USD fund, DCP Capital also hit the final close for an RMB-denominated fund, which took the total capital secured in the fundraising round to US$2.5 billion, said the company in the statement. DCP Capital said it attracted capital injections from sovereign wealth funds, pension funds, endowment funds, funds of funds, and family funds. The detailed information of investors remained undisclosed.

"Our investors include some of the world’s first-class long-term institutional investors who also have rich investment experience in Asia. We appreciate their acknowledgments in our excellent investment performance and professional support to leading portfolio companies," said David Liu Haifeng, chairman and founding partner of DCP Capital.

Liu previously served as partner of KKR, co-head of KKR Asia Private Equity, and CEO of KKR Greater China. Prior to KKR, Liu was the managing director and co-head of Morgan Stanley Private Equity Asia. He was responsible for a number of direct investment projects in Greater China, involving companies like insurer PingAn Insurance, dairy products and ice cream producer Mengniu Dairy, and women’s shoe retailer Belle International.

Headquartered in Hong Kong, DCP Capital mainly backs companies in consumer products, healthcare, education, environmental protection, and internet areas. The company poured money into Venus MedTech, a Chinese medical device company specialized in transcatheter valve replacement therapy, in May 2018.