China New Enterprise Investment banks 10x return on Jilin Liyuan Aluminum sale


Growth capital firm China New Enterprise Investment has fully exited its investment in Jilin Liyuan Aluminum with a 10.3 times gross return.

Gross proceeds from the share sales and dividends amounted to $77.2m, representing approximately 10.3 times multiple on CNEI’s initial investment, and an IRR of 70 per cent.

CNEI invested $7.5m in the aluminum extrusion product manufacturer in July 2008.

The company subsequently completed its IPO in Shenzhen SME Board in November 2010.

CNEI manages growth capital funds in China through a transparent on-shore structure with predominantly foreign capital. CNEI invests in well established Chinese growth companies in a wide range of industries, with a special focus on companies capitalising on the growth of China’s domestic consumption.

In November 2008 UK mid-market firm LDC announced a $30m investment in CNEI’s China New Enterprise Investment Fund II.

The fund is being managed by New Enterprise Management, whose principal partners are Xiaoyang Yu, Johannes Schoeter and Hirosuke Sakai.

Last month the firm invested $21m in biomedical company Shanghai Fudan-Zhangjiang Bio-Pharmaceutical.

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