JD Capital Accomplished the First Round of Fund-raising of USD Fund II
2014-03-06
It is known by PE Daily that Jiuding China Growth Fund II, L.P., a new USD fund of JD Capital was established recently. The target scale of the fund was 200 million US dollars and in January, it raised an above-target capital of 150 million US dollars before closure of the first round. Currently, this fund has officially started its investment, planning to accomplish the final closure within the year.
It is learned that institutions investing in the fund include sovereign wealth funds and insurance companies from North America and Asia. It was also learned by the PE Daily that there are still a number of institutional investors negotiating with JD Capital with the follow-up investment.
JD Capital is one of the few local fund managers that successfully raise USD funds. Its first USD fund was launched in 2010 with a scale of 120 million US dollars, obtaining investment of globally acknowledged institutional investors including Singapore Sovereign Wealth Fund and Allianz. Of all the projects this fund invested, HDHM (Wuxi Huadong Heavy Machinery Co., Ltd, stock code: 002685) and Zhongsheng Resource(China Zhongsheng Resources Holdings Limited, stock code:2623.HK) successfully listed on the SME Board and main board of Hong Kong Stock Exchange in 2012 respectively. It exited from Sanfeng Environment through M&A with abundant returns and owns several projects including Liuzhou Pharmaceutical declared for IPO. It is known that many institutions invested in USD Fund I continue to participate in the investment of JD USD Fund II, becoming the stable LPs for its foreign currency funds.
Professionals in the industry reckon that in the slow down of Chinese economic development in 2013, its financial environment also entered into a downturn with foreign LPs slowed down their investment pace in China generally. Against the comparatively depressed backdrop, JD Capital, as a local PE, successfully accomplishing its USD fund raising and acknowledged by many well-known international investment institutions, demonstrated its power as an excellent local fund manager.
It is learned that JD Capital’s USD Fund II would continue to focus on the domestic enterprises that are in their growth phase. With regards to investment sectors, this fund will mainly invest in consumer, service, pharmaceutical, agriculture, equipment and mining which JD Capital attaches importance to. As for investment models, it will actively seek investment opportunities such as the M&A and SOE ownership reform other than equity investment.