BEIJING, Oct. 8, 2021 /PRNewswire/ — China Renaissance’s Huaxing Growth Capital has successfully completed the first close of its USD Fund IV in record time, receiving near $550 million limited partnership commitment. The fundraising, towards an expected total fund size of ca. 1,200 million, attracted commitments from reputable investors across Europe, Singapore, Japan, mainland China/Hong Kong and the United States. About one third of the first closing amount was contributed by new investors, including some of the world’s largest sovereign wealth funds, international banks, and family offices. Also, more than 70% of existing institutional clients in Fund I to III re-upped and/ or upsized in Fund IV.
Huaxing Growth Capital is a long-term value investor that is determined to invest in China’s most vibrant technology driven sectors. Its ability to understand and navigate the local market has earned respect and trust from international investors. The fund has a long-standing track record and reputation, and distinctive value add to portfolio companies. Over the past 8 years, Huaxing Growth Capital has invested in a significant number of leading Chinese innovative companies, including top Internet companies such as Meituan, Kuaishou and Dewu, up-and-coming consumer brands such as Pop Mart, Babycare and Dreame; leading companies in the electric vehicle value chain such as Li Auto, HiRain Technologies, as well as many outstanding companies in the healthcare service sector such as Wuxi App. Tech, MGI and Fapon.
Fan BAO, the Founding Partner and Chief Investment Officer of Huaxing Growth Capital, is a respected investor and a trusted advisor to leading Chinese tech Founders and CEOs. Fan founded China Renaissance in 2005, guiding and leading it to become one of the leading financial institutions in China. Fan BAO declared: “We are grateful to have been able to back top entrepreneurs in China, who see us as their partner of choice, particularly due to our capital market expertise”.
The overarching mission of China Renaissance and the investment philosophy applied by its asset management arm, Huaxing Growth Capital, has been defined by Fan BAO as follows: “We are committed to identifying the most innovative Chinese enterprises and founders for the future and partnering with them. We strive to create value for them and thus share in their value creation”. This philosophy is carried out throughout pre-investment screening, investment decision and post-investment management of portfolio holdings. Since its establishment in 2013, Huaxing Growth Capital has always been deeply committed to strong internal corporate ethics, adhering to the highest standards of integrity, and actively integrating social responsibility while creating value for portfolio companies, for LPs and society.
Fan is bullish on China’s long-term growth prospects. Huaxing Growth Capital USD Fund IV has already started to deploy capital targeting the smartization trend in China. The government’s latest policy directions show their commitment to long-term and balanced high-quality economic growth, which will usher in significant opportunities in the most innovative parts of the economy. This renewed focus on technological innovation will accelerate the arrival of the smart economy era and give new impetus to China’s development in the key areas aligned with the fund’s investment strategy: advanced industry, tech, and healthcare. At the same time, China’s determination to enlarge its middle-class base from the current 400mn will lead to a renaissance in China’s consumer sector and the rapid development of exciting new brands. Together these developments point to a bright future for Huaxing Growth Capital USD Fund IV.