Beijing-based Hony Capital has held a first close on RMB7 billion for its second RMB-denominated fund, which has a hard-cap target of RMB10 billion, a spokeswoman for the firm confirmed to PEI Asia.
All LPs in the firm’s first RMB fund have come back onboard for the second fund, the spokeswoman added. Among them, China’s National Social Security Fund (NSSF) committed RMB3 billion, as was reported earlier by PEI Asia.
“We trust Hony Capital very much; we’ve had a very good relationship,”DaiXianglong, chairman of NSSF, was quoted as saying in a statement from Hony.
In 2008, Hony raised RMB5 billion for its maiden RMB fund, to which NSSF committed RMB2 billion. That fund has now been fully deployed.
According to Hony’s statement, the original target of the second RMB fund was set at RMB8 billion. However, as the firm had garnered RMB7 billion for its first close, it subsequently adjusted the target to RMB10 billion. The fund expects a final close by the end of May next year.
The fund will continue to focus on buyout and growth capital investments in the financial services, consumer, culture, media and architecture sectors, according to the statement.
Established in 2003 as a captive private equity platform for government-backed Legend Holdings, Hony currently manages more than $4.5 billion across four USD funds and two RMB funds.
Limited partners in its USD funds include Goldman Sachs, property developer Sun Hung Kai, Temasek, CalSTRS, Stanford and Notre Dame endowment funds, Rothschild, Pantheon Ventures, Partners Group, Squadron Capital, and Asia Alternatives.