China’s Centurium raises more than $2.7 billion in debut fund

This article is more than 12 months old

Jul 04, 2019 06:00 am

HONG KONG China's Centurium Capital, a big backer of domestic start-up Luckin Coffee, said it has raised more than US$2 billion (S$2.7 billion) in its debut fund, giving the private equity firm more firepower to cut deals involving the world's second-largest economy.

The firm, co-founded by the former head of Warburg Pincus Asia Pacific, Mr David Li, said in a statement yesterday that Centurium Capital Partners 2018 LP raised the sum in US dollars.

The fund secured strong interest from global investors, known as limited partners (LPs), such as pension funds, sovereign wealth funds and funds-of-funds, it said.

Investors in the fund include Singapore's GIC and Temasek Holdings, Canada's Ontario Teachers' Pension Plan, China Investment Corp (CIC) and US pension fund Washington State Investment Board, said two people with direct knowledge of the matter.

The US dollar fund will help Centurium invest in Chinese firms that use overseas structures such as variable-interest entities.

Launched in March 2018, Centurium's maiden fund reached the first close of nearly US$1 billion three months later and has beaten the US$1.5 billion and US$1.98 billion fundraising targets since then.