CDC commits $105m to funds for China

The latest commitments comprise $30m to Tripod Capital China Fund II, $25m to Qiming Venture Partners II, $40m to FountainVest China Growth Fund and $10m to Legend Capital IV.

Tripod Capital China Fund II plans to invest between $5m and $30m in mid-market companies in Mainland China, with a focus on the areas of manufacturing, environmental natural resources, commercial financing and new materials.

Qiming Venture Partners II focuses on early stage investments in TMT, healthcare and consumer-driven businesses.

FountainVest China Growth Fund will make growth capital investments between $50m and $100m in companies entering high growth stages.

Legend Capital IV focuses on early stage venture capital deals, primarily network applications and services, outsourcing and professional services and infrastructure.

The four funds expect to raise a total of $1.7bn for investment in the region.

Brian Lim, portfolio director, CDC Group, said, ‘Investor confidence is growing in China and investment levels look set to rise during the rest of the year. All four of our commitments are being made to domestic funds led by experienced teams with deep knowledge of the diverse and fast developing Chinese market.

‘Despite rapid economic growth in China, a third of the population continues to live below the poverty line. Private equity investment has a significant role to play in creating a thriving private sector, creating sustainable employment and homes for China’s increasingly urban population,’ Lim added.

CDC has net assets of £2.7bn.

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