China Renaissance Closes Huaxing Growth Capital USD Fund III
China Renaissance Holdings Limited announced today the final closing of Huaxing Growth Capital's USD Fund III with more than US$600 million in committed capital. 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 RMB6.5 billion last year. To date, China Renaissance's private equity funds have approximately RMB40 billion of assets under management in total.
After the final close of USD Fund III, Huaxing Growth Capital's single investment size can be up to US$50 million. The fund will focus on New Economy growth-stage companies that are benefiting 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, said, "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, said: "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 favored 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 June 30, 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%, according to the firm.
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