Credit Suisse-Backed China Fund Said to Seek $750 Million
China Renaissance Capital Investment, an investment firm part-owned by Credit Suisse Group AG (CSGN), is seeking $750 million for its next private-equity fund focused on Asia’s largest economy, according to two people with knowledge of the matter.
China Harvest Fund III LP will invest in companies without using debt, said the people, who asked not to be named because the fund is private. The Hong Kong-based firm usually takes preferred equity stakes of $20 million to $75 million, according to an investor presentation viewed by Bloomberg News.
China Renaissance was founded in 2005 by Mark Qiu, George Li and Hung Shih. Qiu previously was chief financial officer of Cnooc Ltd. (883), China’s biggest offshore oil producer. Li was head of China investment banking of UBS AG, and Shih was country head at UBS. The team manages the funds, and Zurich-based Credit Suisse owns a portion of the management company.
Katherine Herring, a spokeswoman for Credit Suisse, declined to comment.
China Renaissance’s second fund, from 2009, was generating a 1.7 times multiple and a 46.6 percent gross internal rate of return on $347.1 million of invested capital as of June 30, according to the presentation. The firm’s 2006 fund was producing a 1.7 times multiple and 16.7 percent gross IRR as of the same date.
China Renaissance, with $1.3 billion under management as of August, also manages early-stage funds that invest in China. The team has offices in Hong Kong, Beijing, Shanghai and Chengdu.
Park Hill Group LLC, the Blackstone Group LP (BX) unit that recruits investors for private-equity funds, is helping the firm raise money.
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