Beijing-based private equity firm Hony Capital, a part of Chinese investment holding company Legend Holdings, has raised $130 million for its maiden USD-denominated sub-fund to clock mid-staged investments, per an announcement.
Its limited partners (LPs) are a clutch of global organizations, whose names could not be ascertained.
Hony Capital initiated fundraising talks in July this year. The fund is betting big on the digital consumption story and looking to invest in digitally-driven consumer brands, and new retail platforms, among others. It also has plans to tap the business-to-business segment.
With about 80 billion yuan ($12 billion) in assets under management, Hony Capital operates businesses comprising private equity, real estate, mutual fund, hedge fund, and innovation investments.
Limited partners (LPs) of the group are Goldman Sachs, Canada Pension Plan Investment Board, Stand University Endowment Fund, New York State Common Retirement Fund, Temasek, GIC, Kuwait Investment Authority, and China Merchants Bank.
Since its inception in 2003, Hony has invested in over 100 startups across sectors such as healthcare, consumer products, media and entertainment, environmental protection, new energy, and advanced manufacturing, among others. Some of its portfolio companies are ByteDance, UK’s PizzaExpress, China International Marine Containers, among others.
In 2017, Hony had tied up with Japanese behemoth SoftBank and China’s Trustbridge Partners to collectively invest $500 million in WeWork in a bid to fuel the shared workspace’s growth and expansion in the Chinese market.
Hony had launched the sub-fund in 2016 with the intention to invest in emerging digital consumption sectors such as skincare brands and edtech. In 2018, the sub-fund had made investments in Sequoia Capital China backed-fresh food delivery e-commerce platform Dingdong Maicai.
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