China Renaissance Holdings (China Renaissance), has held the final closing of Huaxing Growth Capital’s USD Fund III with more than USD600 million in committed capital, 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 CNY6.5 billion last year. To date, China Renaissance’s private equity funds have approximately CNY40 billion of assets under management (“AUM”) in total.
After the final close of USD Fund III, Huaxing Growth Capital’s single investment size can be up to USD50 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.
Fan BAO, Chairman and CEO of China Renaissance, Founding Partner and Chief Investment Officer of Huaxing Growth Capital, says: “I would like to extend my appreciation to our global LPs. Thanks to their unwavering support and trust, we were able to close our third USD fund during a period of mounting geopolitical uncertainties and a global pandemic. Our world-class information system and in-depth industry research capabilities are the foundation of our successful investment management business. 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. As we deploy our capital, we will adhere to our proven investment philosophy of bringing value to our portfolio companies and delivering strong returns to our investors.”
John Hsin, Managing Partner of Huaxing Growth Capital, says: “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. We will continue to broaden our global perspectives and strengthen our capabilities to provide full-cycle financial services to the best entrepreneurs.”
China Renaissance launched its investment management business in 2013, and currently manages Huaxing Growth Capital and Huaxing Healthcare Capital. As of 30 June, 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 per cent.
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 leading 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.
