JIDA Capital Partners and CGN Private Equity Fund Management Company (CGNPE) have announced the first close of CGN Capital Partners Fund III at RMB1.87 billion (US$291 million) and the launch of the fund to international investors.
CGN Fund III is an unlisted private equity infrastructure fund focusing on renewable energy infrastructure assets in China. The target size of the fund is RMB5 billion (US$778.5 million). The fund's investment strategy is to invest predominantly in operating renewable energy infrastructure assets offering sustainable yields and moderate capital growth over a medium term investment horizon. Asset classes that the fund will particularly focus on include wind, hydro and solar power.
The fund is incorporated in Qianhai, Shenzhen under the Qualified Foreign Limited Partnership program. It is structured as a limited partnership with CGNPE as the manager and one of JIDA Capital's subsidiaries as the general partner.
The fund has secured commitments from a range of institutional investors including two of China's largest banks, two of China's largest asset management companies as well as major corporations active in the fund's target sectors. Anthony Muh, Chairman of JIDA Capital, stated:
"I'm very pleased with the level of commitments that we have secured and with the calibre of the investors we have been able to attract in this first close."
The fund's first close triggers the commencement of the Fund's investment period. Yin Engang, Chairman of CGNPE, commented:
"The fund has a strong investment pipeline. We are looking at a number of opportunities and expect to commit to our first investment very soon."
The fund's investment team specialises in the renewable energy sector and has strong origination, operation and asset management expertise. The team has extensive global infrastructure investment experience as well as an in-depth knowledge of the local Chinese infrastructure market.