Chinese private equity firm NDE Capital raises hard cap for second Asia fund to $450m.
Chinese private equity firm NDE Capital has received approval from investors to raise the maximum size of its newest Asia fund from $350 million to $450 million, the Wall Street Journal reports.
The fund, which was established in 2015, is to be invested in NDE’s portfolio companies in Indonesia and China. Investors in the fund include sovereign wealth funds, university endowments, and foundations across Asia, the Middle East, North America and Europe.
It is the second fund the company has dedicated for the region, having raised $50 million for its first vehicle back in 2007. The firm is said to have exited five out of the seven portfolio companies in the first fund.
The first fund reportedly generated a gross internal rate of return of 63.5 per cent and 51.1 per cent net IRR, and a multiple of invested capital of 4x, and a 3.1x net multiple.
The fund will allocate 60 per cent of its capital to investments in China and 40 per cent to Indonesia, with the company expected to use its connections in the Southeast Asian region to help the growth of its portfolio companies.
NDE says it focuses its investments on mid-market enterprises that will benefit cross-border growth between China and the international market and the technology needs of the Chinese economy. Among its portfolio companies are Concord Medical Services Holdings, which runs radiotherapy and diagnostic imaging centers in China; China Singyes Solar Technologies; and pharmaceutical company Tairui.
NDE’s planned investment in Indonesia adds to the wave of money poured by Chinese investors to Southeast Asia’s largest market. In the first half of 2017, Indonesia’s Investment Coordinating Board (BKPM) recorded that investment from China grew by 92.79 per cent year-on-year to $1.96 billion. The government says it is expecting more investment to come from China, who has consistently been in Indonesia top 5 foreign investors.