HONG KONG Aug 21 Orchid Asia, one of China's
oldest private equity firms, said on Thursday it had closed its
sixth private equity growth fund, raising $920 million, well
above its original target, on a record of strong returns to
Orchid Asia VI, L.P. was launched in March 2014 as a $750
million fund, and public and private pension funds, insurance
companies and endowments account for most of the investors.
Pennsylvania Public School Employees Retirement System invested
$75 million in the fund.
Orchid's success in raising nearly $1 billion contrasts with
a dramatic decline in appetite for China private equity as
investors, disappointed with fund performances in China, slow
the pace of new investments. Total funds raised for private
equity in China fell 31 percent in 2013 to $18.6 billion,
following a steeper 49 percent decline the year earlier,
according to data from Asian Venture Capital Journal.
Established in 1993, Orchid makes early-stage investments in
growing businesses. The firm has invested in 70 companies and
exited over 38, with past investments including Autohome Inc
and Ctrip.com International Ltd.
According to information on the Pennsylvania Public School
Employees Retirement System web site, Orchid's funds were
returning a net multiple of 1.8 times investor money at Dec. 31.
Orchid's fifth $650 million fund, raised in 2010, had a net
internal rate of return of 55.1 percent, the site shows.
Orchid has offices in Hong Kong, Shenzhen, Shanghai, Beijing
(Reporting by Stephen Aldred; Editing by Kenneth Maxwell)