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China Renaissance closes Huaxing Growth Capital USD Fund III
Latest fundraising attracts over US$600 million for New Economy investments
11 Sep 2020 | The Asset

Hong Kong-listed China Renaissance Holdings announced on September 10 the final closing of Huaxing Growth Capital's USD Fund III with more than US$600 million in committed capital. The latest fundraising followed the close of its RMB Fund III which raised over 6.5 billion yuan (US$951 million) last year. To date, China Renaissance's private equity funds have approximately 40 billion of assets under management.

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 stand to benefit from 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, its private equity funds had an average multiple of invested capital of 2.5 times and internal rate of return 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. Its portfolio companies include Meituan Dianping, Didi Chuxing, WuXi AppTec, MiningLamp Technology and Medlinker.  

This year, despite challenging market conditions, China Renaissance has invested in a number of leading companies across various growth sectors, such as eRoad Software, Xingsheng Youxuan, MGI Tech (Huada Zhizao), HiRain Technologies and Insgeek. A number of companies in its portfolio have successfully listed in the public markets this year, including Li Auto, Beike Zhaofang and Dada Group.

Fan Bao, chairman and chief executive officer of China Renaissance and founding partner and chief investment officer of Huaxing Growth Capital, noted in a statement the group's world-class information system and in-depth industry research capabilities are the foundation of its investment management business. "Over the past seven years, China Renaissance has invested in over 100 New Economy entrepreneurs and homegrown champions, and helped more than 30 of these companies go public in China and international markets. China's structural changes continue to create significant new investment opportunities," he says.

Adds Huaxing Growth Capital managing partner John Hsin: "In spite of the persisting global pandemic, China's economy – especially the New Economy sectors – have outperformed the global market, demonstrating resilience and huge potential with exceptional growth.  China has become the world's largest single market of Internet-related industries where innovative companies are increasingly favoured by global investors. China's New Economy sectors are still at an early stage of development."

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