China Everbright in $300m first close for overseas fund

The Chinese asset manager is eyeing a second close on its $1bn vehicle by the end of this year.

China Everbright has reached a $300 million first close for the Everbright Overseas Infrastructure Investment Fund, with support from domestic institutional investors. 

The fund has a $1 billion target size and is looking to reach a second close by the end of this year, to be followed by a third and final close, said Shuang Chen, executive director and chief executive of the firm, during a press conference in Hong Kong yesterday. 

Officially launched in July, the overseas-focused infrastructure fund has two seed investments, one being Albania’s Tirana International Airport, acquired last year, and the other a commitment to a fibre-optic network developer in Hong Kong, made early this year. Chen said the team is working on the fund’s third deal, on which he didn’t provide further information. 

The vehicle aims to invest in brownfield assets with stable cashflow in foreign markets. Chen said the fund is looking at a pipeline of project opportunities worth $250 million. 

The Hong Kong-listed Chinese asset manager said its fundraising tally broke the 100 billion Hong Kong dollar ($12.78 billion; €10.74 billion) mark in the first half of this year. Its total committed capital stands at 106.6 billion Hong Kong dollars, 78 percent of which came from external capital. 

China Everbright is currently managing 38 funds across various asset classes including private equity, real estate, venture capital, debt, secondaries, equities, fixed-income products and funds of funds in China and overseas markets. Fund investors include joint-stock commercial banks, corporations, investment companies, trusts and asset managers. Chen added that Chinese insurance companies have become the latest group of new investors in China Everbright’s fund products, expanding the firm’s LP base.