China’s CreditEase seeks $300m for third FoF

The firm will earmark up to 20% of the fund for secondaries and co-investments.

Chinese wealth management firm CreditEase Wealth Management is planning to raise its third and largest fund of funds by the third quarter this year, sister publication Private Equity International has learned.

The Beijing-headquartered firm is eyeing a $300 million target for CreditEase Wealth Management Global Fund of Funds III, up from its $200 million predecessor.

The firm will earmark up to 20 percent of the fund for secondaries and co-investments.

Seungha Ku, partner for global private equity at CreditEase, told PEI that the firm expects more Asia-based high-net-worth investors and institutions for its latest offering. It received commitments mainly from Chinese HNWIs, family offices and trusts for its first two funds: the 2016-vintage, $200 million CreditEase Global Private Equity Fund of Funds and the 2017-vintage $200 million Fund II. Both funds are almost fully invested, Ku said.

Fund III will have the same strategy as previous funds. Around 60 percent will back mid-market buyout managers and the remaining 40 percent for venture capital and growth. Target geographies also remain the same: North America, Western Europe, the Nordics and Asia.

Capital raised from Fund III will focus on growing industries such as consumer, TMT, fintech and healthcare. Ku said that on the healthcare side CreditEase will focus on the US and China markets, from VC-oriented investments such as biopharma to providers and operators of clinics, as well as health tech and medical devices.

CreditEase has backed funds managed by global buyout firms such as Blackstone, KKR and The Carlyle Group as well as venture capital firms in the US and China. The firm will remain focused on smaller, sector-focused fund managers, Ku stressed.

Along with its global fund of funds, Credit Ease is also deploying capital from its 2016-vintage Global Secondary Fund which closed on $150 million.