Beijing, China-based China Renaissance Holdings Limited (stock code: 1911.HK) closed Huaxing Growth Capital’s USD Fund III with more than US$600 million in committed capital.
The fund is backed by top-tier global institutional and individual investors from Europe, Asia and the Middle East, including sovereign wealth funds, commercial banks, fund of funds and family offices.
The close of the USD Fund III marks another fundraising milestone for Huaxing Growth Capital following the close of the RMB Fund III which raised over RMB6.5 billion last year. To date, China Renaissance’s private equity funds have approximately RMB40 billion of assets under management in total.
After the final close of USD Fund III, Huaxing Growth Capital’s single investment size can be up to US$50 million. The fund will continue to focus on New Economy growth-stage companies that are benefitting from the structural evolution of technological innovations, consumption upgrade and industrial transformation.
China Renaissance launched its investment management business in 2013, and currently manages Huaxing Growth Capital and Huaxing Healthcare Capital. As of June 30, 2020, China Renaissance’s private equity funds had an average multiple of invested capital (“MOIC”) of 2.5x and internal rate of return (“IRR”) of 33%.
Huaxing Growth Capital manages a total of six private equity funds, namely USD Fund I, USD Fund II, USD Fund III, RMB Fund I, RMB Fund II and RMB Fund III.
Huaxing Growth Capital’s portfolio companies include Meituan Dianping, Didi Chuxing, WuXi AppTec, MiningLamp Technology and Medlinker.
Despite the challenging market conditions in 2020, China Renaissance has invested in a number of companies across various flourishing sectors, such as eRoad Software, Xingsheng Youxuan, MGI Tech (Huada Zhizao), HiRain Technologies and Insgeek. In addition, a number of China Renaissance’s portfolio companies have successfully listed in the public markets this year, including Li Auto, Beike Zhaofang and Dada Group.