Credit Suisse Group’s China-focused investment arm is believed to be eyeing a $750m fundraise for its latest China Harvest private equity vehicle.
China Harvest III will continue the focus of its predecessor by targeting investments in mid-market growth capital without the need for leverage, according to a report by Bloomberg.
It has previously made investments of between $20m and $50m across China, Hong Kong, Macau and Taiwan.
The fund will be managed by China Renaissance Capital Investment, a strategic alliance between Credit Suisse and a team of experiences Chinese investment professionals.
Bloomberg said China Harvest II was already generating a 46.6 per cent gross IRR and 1.7 times cash multiple despite only being launched in 2009.
It added that China Harvest I, from 2006, was running at a similar cash multiple but 16.7 per cent gross IRR.
Earlier this week it emerged China’s state-backed brokerage CITIC Securities is planning to raise up to $1.6bn for its first private equity fund.
The firm is controlled by the Chinese government through CITIC Group, the $20bn multinational which invests in a range of financial and non-financial industries on behalf of the state.
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