China Renaissance Gains More Than US$600M After Close of Huaxing Growth Capital USD Fund III

Diverse investors across Europe, Asia, and the Middle East commit capital to China Renaissance’s Huaxing Growth Capital USD Fund III

Marking another milestone in fundraising, Beijing-based financial institution China Renaissance announced the final close of its Huaxing Growth Capital USD Fund III in a statement yesterday, after having secured more than US$600 million in investment funding.

Capital commitments for the fund were received from investors based across Europe, Asia, and the Middle East, the statement noted.

It added that the consortium of investors in the Fund comprised sovereign wealth funds, commercial banks, fund of funds, family offices and individual investors as well.

The size of the USD Fund III is enough to allow for a single investment from Huaxing Growth Capital to range up to US$50 million, the statement further said.

“Our world-class information system and in-depth industry research capabilities are the foundation of our successful investment management business,” China Renaissance CEO and Huaxing Growth Capital Founding Partner Fan Bao said in the statement.

“Over the past seven years, China Renaissance has invested in over 100 New Economy entrepreneurs and home-grown 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 further added.

The Huaxing Growth Capital USD Fund III mainly focuses on New Economy growth-stage companies. The “New Economy” concept refers to high-tech and high-growth industries that are expected to add increasing value and growth to global economies, such as fintech or Internet companies.

An investment firm launched in 2013 by China Renaissance, Huaxing Growth Capital has backed the likes of Meituan Dianping, DiDi Chuxing and MiningLamp.

The firm focuses on Chinese companies within the technology, media, and entertainment sectors, and manages a total of six private equity funds, split equally as three USD funds and three RMB funds, the statement noted.

Prior to the USD Fund III, China Renaissance had last closed the RMB Fund III last year, raising over RMB6.5 billion, the statement noted.

“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,” Managing Partner of Huaxing Growth Capital, John Hsin said in the statement.

“China has become the world’s largest single market of Internet-related industries where innovative companies are increasingly favored by global investors. China’s New Economy sectors are still at an early stage of development,” Hsin also said.

Apart from Huaxing Growth Capital, the investment bank also manages Huaxing Healthcare Capital.

To date, China Renaissance’s private equity funds have approximately RMB40 billion of assets under management in total, the statement noted.

China Renaissance noted in the statement that its private equity funds have around RMB40 billion in assets under management (AUM). Further, its funds have recorded an average multiple of invested capital (the fund’s value as a multiple of its cost) of 2.5x, as well as an internal rate of return of 33%.

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