Chinese PE Orchid Asia mops up $1.3b for seventh fund

By Tanu Pandey

DealStreetAsia

03 January 2018

Chinese private equity firm Orchid Asia Group has raised $1.3 billion for its seventh fund Orchid Asia VII, exceeding the $900-  million target announced at the time of the fund’s launch in July last year.

According to a regulatory SEC filing by the firm on Tuesday, the date of first sale for the offering was December 15 last year.

It is not clear if the fund is still open for more commitments. There was no response to an emailed query to Orchid Asia on  whether $1.3 billion marks the fund’s final close.

The PE firm’s seventh growth equity fund expects to make equity investments between $20 and $150 million in 20-25  companies with a minimum enterprise value of $50 million, a disclosure from Pennsylvania Public School Employees Retirement  System had said earlier.

Pennsylvania’s retirement fund, according to the disclosure, was looking to make a commitment of $75 million to Orchid Asia VII.  It had made a similar commitment to Orchid Asia’s sixth fund.

Chinese investor Orchid Asia rakes in $1.3bn for Fund VII to mark largest vehicle

 By Fraser Irving

AltAssets

Chinese buyout house Orchid Asia has pulled in $1.3bn for its latest fund, AltAssets can reveal.

The firm has no capital left to register for Orchid Asia VII after receiving commitments from 81 investors, according to a filing with  the SEC.

The capital raised amounts to the firms biggest ever vehicle, and comfortably beats the $920m raised for the predecessor  vehicle  in 2014.

It is likely that the vehicle will continue the firms tried-and-tested strategy of investing in businesses across Asia, but with a laser  focus on China.

It seeks to invest in “expanding domestic enterprises” which have good growth prospects across the consumer services,  products, outsource manufacturing and services sectors, according to its website.

The private capital house first raised a fund in 1993, and since then has raised an additional four, increasing each time.

It has invested in up to 52 businesses since its inception, including in Nirvana Asia, La Chapelle and LaFarge.

Back in October, AltAssets reported that the firm had launched a venture capital vehicle and was seeking up to $900m.

Copyright © 2018 AltAssets

Orchid Asia to hold $900m 'one and done' on Fund VII

By Carmela Mendoza

Private Equity International

11 October 2017

Orchid Asia Group, a China growth equity-focused firm, is expecting to hold a first and final close for its seventh vehicle by  November.

The Hong Kong-headquartered investment firm is seeking $900 million for Orchid Asia VII, according to a document prepared by  advisor Hamilton Lane for Pennsylvania Public School Employees' Retirement System.

Capital from the fund will be invested in about 25 companies with ticket sizes of between $20 million to $150 million. The firm  primarily targets Chinese companies in the consumer services and products sector, outsourced manufacturing, retailing, high  tech, media and healthcare services sectors.

Orchid itself will commit 5.6 percent of commitments or a minimum of $50 million to Orchid VII, as well as 7 percent or $68  million  for co-investments, the document notes.

PSERS' board approved a commitment of up to $75 million Orchid VII, according to its website. The pension has already backed  Orchid Asia's previous funds, committing $40 million to the 2011-vintage Fund V and $75 million the 2014-vintage Fund VI, a  separate document from PSERS shows.

Fund V delivered a 1.7x money multiple and 28.4 percent net internal rate of return, while Fund VI delivered 1.1x multiple and  10.4 percent net IRR as of 30 June, according to the document.

Investors in Orchid Asia's previous funds include Oregon State Treasury, Maryland State Retirement and Pension System,  Alaska Permanent Fund and Commonwealth Superannuation System, according to PEI data.

Orchid Asia manages over $3 billion of assets and has offices in Hong Kong, Shanghai, Beijing and Guangzhou. Its portfolio  includes travel company Ctrip, ladies apparel company La Chapelle and personal care products manufacturer Weimeizu.

Orchid Asia declined to comment on fundraising.

Reported by Winnie Liu, AVCJ

July 11, 2016

CVC Capital Partners has offered to buy out Hong Kong-listed Nirvana Asia, Asia’s largest funeral services firm, in a cash and stock swap deal worth $1.1 billion.

According to a regulatory filing, CVC is providing two options - either in cash or in a combination of cash and share swap scheme - for existing shareholders to realize their investments. For the cash arrangement, the PE firm is offering shareholders HK$3 (US 0.39) per share - the same price when Nirvana listed on the Hong Kong Stock Exchange in 2014 - in cash, which represents a 22.4 % premium over Nirvana's last trading price.

As part of the deal, CVC is making the offer in cash and shares of its investment vehicle to founder-led vehicle Rightitan, which owns 42.69% of the company, and PE backer Orchid Asia Group, which holds a 21.64% stake. Under this program, each Nirvana share could be exchanged for 2.10 preference shares and 0.03 ordinary shares in the CVC-held buyout vehicle, plus HK$1.37 in cash, the filing said. The founder and Orchid Asia will receive HK$1.58 billion and HK$800 million from CVC, respectively, for offloading a portion of shares.

Other investors are offered a payment purely in cash, including Transpacific Ventures, which will sell its entire 10.66% stake to CVC for HK$863 million.

The shares of Nirvana will be delisted from the Hong Kong bourse upon completion of the transaction. Nirvana's founder Tan Sri Kong, and CVC will be the two largest shareholders in the company. The founder will continue in his role as CEO and lead the existing management team, CVC said in a separate statement.

Founded in 1990, Kuala Lumpur-based Nirvana is the largest integrated funeral and bereavement care provider in Asia. It provides burial plots, niches and tomb design and construction services, as well as funeral services. The company has operations in six countries across Asia, including Singapore and Indonesia, and employs over 700 staff across the region.

Revenue came to $148.58 million last year, down from $165.06 million in 2014, while net profit was up from $44.65 million to $45.38 million during the same period.

J.P. Morgan and Clifford Chance advised CVC, while Nirvana was advised by UBS and Sullivan and Cromwell. CIMB is providing debt financing.

Orchid Asia, Eastern Bell in Series B for China’s Weimeizi

By Winnie Liu

Asian Venture Capital Journal

08 April 2016 

Orchid Asia Group and Eastern Bell Ventures have provided a Series B round of funding for Weimeizi, a Chinese personal care products manufacturer.

The funding amounts to several hundred million renminbi, according to a release. The company raised an undisclosed Series A round from Legend Capital in September of last year.

Founded in 2006, Guangzhou-based Weimeizi manufactures a wide range of oral care products from toothbrushes to dental gross under its own Saky brand. The company is also an original equipment manufacturer (OEM) for more than 13 domestic brands. It claims to produce a total of 26,000 tons of toothpaste and 13.2 million toothbrushes every month.

The company has built a sale network in more than 300 Chinese cities and distributes its products distributed through Carrefour, Wall-Mart, Jusco and other supermarkets.

"We choose to invest in Weimeizi is because the company's Saky products have stood out from the market even it's extremely competitive," representatives from Orchid Asia and Eastern Bell Ventures said in the release.

Orchid Asia closed its sixth China growth capital fund at the hard cap of $920 million in August 2014. The firm focuses on backing experienced operating executives in building franchises in Asia, with an emphasis on China. Sectors of interest include consumer products and services as well as outsourced manufacturing and services.

Eastern Bell Ventures was founded in 2009 and focuses on logistics, supply chain, consumer and retail, as well as online-to-offline (O2O) e-commerce companies. It manages two renminbi-denominated funds, with CDB Capital and Oriza Holdings among the LPs.