cel and idg capital join hands to launch the largest and most influential m&a investment fund in china
complete rmb 10 billion fund raising
business related 29 jun 2016
china everbright limited (“cel”; stock code: 165.hk) is pleased to announce that the company and idg capital partners (“idg capital”) have agreed to jointly launch the most influential m&a investment fund in china, with total committed capital of not less than rmb20 billion – “idg - everbright m&a investment fund”. both companies have officially signed the limited partnership agreement and completed the first round of fund raising amounting to rmb10 billion, of which cel has committed rmb2 billion to the principal investment capital and other institutional investors contributed the remaining rmb8 billion.
cel’s wholly owned subsidiary cel puyi and idg capital’s subsidiary harmony zhuoyue will both be the general partners, jointly managing the fund. the core investment team will be formed by both cel and idg capital, leveraging resources from both entities. the fund will take advantage of cel and idg capital’s strong capability in pe investment, investment banking, capital market and asset management to help domestic and overseas large and mature companies grow and scale up in the capital market, helping investors share steady chinese economic growth and healthy growth in the capital market. different from other vc and pe funds that focus on early and growth stage targets, the investment portfolio will comprise leading companies that already have mature business models, relatively high intrinsic value, leading position in specific business segment or public companies with the potential to become the sector leader. the fund will develop specific strategies in their investment, financing, merger and acquisition or management incentive scheme. furthermore, the fund will leverage investment team’s profound understanding about policy direction, regulations and latest market trend to explore and apply diversified investment strategies and innovative deal structures. there are more than 20 pipeline projects to be closed by the fund and investment agreements of some of the projects are already signed.
cel and idg capital have maintained good cooperative relationship for many years. in 2014 cel and idg capital have integrated resources and jointly developed the landmark real estate project “future beijing center” in beijing tongzhou district. the project aims to establish the innovative and unique “multi-purpose cluster that combines business and finance”, initiating the exemplary development model to effectively direct financial capital into leading industry development to form the “capital engine” that influences the overall economic development in tongzhou. through providing comprehensive financial services across the value chain, the project aims to incubate globally competitive public companies and industry leaders, benefiting job market and tax revenue in the whole region and helping the government to realize strategic plans for economic development and industry upgrade. moreover, cel and idg capital recently jointly invested in prominent blockchain venture circle, playing an active role in the company’s payment and consumer finance business expansion in china and the rest of the world. built upon the past successful cooperation between cel and idg capital, this fund is the largest fund formed by both entities and great resources from both entities have been committed. the successful establishment of this fund will benefit from cel’s background of state ownership, cross-border asset management platform and idg capital’s global prestige in vc and pe investment capability.
chen shuang, executive director and ceo of china everbright limited, said, “idg capital is one of the earliest foreign investment funds to enter the chinese market, with leading industry knowledge and investment experiences in tmt, high-tech manufacturing and many other sectors. idg capital has invested in baidu, tencent, sohu, xiaomi and many other tmt companies that are key to china’s internet development. cel, as the largest overseas financial platform of china everbright group, has the advantage of having all required investment licenses and great market influence. having more than 15 years of investment experiences and launched more than 10 investment funds through international investment platform, we have helped incubate many leading chinese companies with high growth potential. cel is committed to becoming the best cross-border asset management platform in china. the successful establishment of this fund leverages on cel super project acquisition team and idg capital’s great investment team, bringing upon cel and idg capital’s rich experiences and resources in sector investment and cross-border capital management capability. we believe the fund will become one of the most influential investment fund in china.”
hugo shong, founding partner of idg capital, said, “taking into account consumption upgrade of chinese consumers, transformation of traditional industries through the internet, merger and acquisition within industry sectors, we have witnessed a lot of great investment opportunities coming in relation to ipo, m&a, spin off and listing of high quality assets, etc. cel is a very influential financial institution in china, possessing great business network and strong capability, discovering and incubating many chinese companies with high potential for growth. cel and idg capital have great investment track record, rich pipeline project reserve, long-term fund management experiences and solid investment style. we hope to leverage on the historical business cycle of industry upgrade and create great financial return for investors through the launch of this fund.”
cel’s wholly owned subsidiary cel puyi and idg capital’s subsidiary harmony zhuoyue will both be the general partners, jointly managing the fund. the core investment team will be formed by both cel and idg capital, leveraging resources from both entities. the fund will take advantage of cel and idg capital’s strong capability in pe investment, investment banking, capital market and asset management to help domestic and overseas large and mature companies grow and scale up in the capital market, helping investors share steady chinese economic growth and healthy growth in the capital market. different from other vc and pe funds that focus on early and growth stage targets, the investment portfolio will comprise leading companies that already have mature business models, relatively high intrinsic value, leading position in specific business segment or public companies with the potential to become the sector leader. the fund will develop specific strategies in their investment, financing, merger and acquisition or management incentive scheme. furthermore, the fund will leverage investment team’s profound understanding about policy direction, regulations and latest market trend to explore and apply diversified investment strategies and innovative deal structures. there are more than 20 pipeline projects to be closed by the fund and investment agreements of some of the projects are already signed.
cel and idg capital have maintained good cooperative relationship for many years. in 2014 cel and idg capital have integrated resources and jointly developed the landmark real estate project “future beijing center” in beijing tongzhou district. the project aims to establish the innovative and unique “multi-purpose cluster that combines business and finance”, initiating the exemplary development model to effectively direct financial capital into leading industry development to form the “capital engine” that influences the overall economic development in tongzhou. through providing comprehensive financial services across the value chain, the project aims to incubate globally competitive public companies and industry leaders, benefiting job market and tax revenue in the whole region and helping the government to realize strategic plans for economic development and industry upgrade. moreover, cel and idg capital recently jointly invested in prominent blockchain venture circle, playing an active role in the company’s payment and consumer finance business expansion in china and the rest of the world. built upon the past successful cooperation between cel and idg capital, this fund is the largest fund formed by both entities and great resources from both entities have been committed. the successful establishment of this fund will benefit from cel’s background of state ownership, cross-border asset management platform and idg capital’s global prestige in vc and pe investment capability.
chen shuang, executive director and ceo of china everbright limited, said, “idg capital is one of the earliest foreign investment funds to enter the chinese market, with leading industry knowledge and investment experiences in tmt, high-tech manufacturing and many other sectors. idg capital has invested in baidu, tencent, sohu, xiaomi and many other tmt companies that are key to china’s internet development. cel, as the largest overseas financial platform of china everbright group, has the advantage of having all required investment licenses and great market influence. having more than 15 years of investment experiences and launched more than 10 investment funds through international investment platform, we have helped incubate many leading chinese companies with high growth potential. cel is committed to becoming the best cross-border asset management platform in china. the successful establishment of this fund leverages on cel super project acquisition team and idg capital’s great investment team, bringing upon cel and idg capital’s rich experiences and resources in sector investment and cross-border capital management capability. we believe the fund will become one of the most influential investment fund in china.”
hugo shong, founding partner of idg capital, said, “taking into account consumption upgrade of chinese consumers, transformation of traditional industries through the internet, merger and acquisition within industry sectors, we have witnessed a lot of great investment opportunities coming in relation to ipo, m&a, spin off and listing of high quality assets, etc. cel is a very influential financial institution in china, possessing great business network and strong capability, discovering and incubating many chinese companies with high potential for growth. cel and idg capital have great investment track record, rich pipeline project reserve, long-term fund management experiences and solid investment style. we hope to leverage on the historical business cycle of industry upgrade and create great financial return for investors through the launch of this fund.”
