China Merchants Capital

China Merchants Capital Management Co., Ltd.
Native name
招商局资本投资有限责任公司.
Company typeJoint venture
IndustryInvestment management
Founded2012; 13 years ago (2012)
HeadquartersShenzhen, Guangdong, China
Hong Kong
Key people
Vincent Peng (Chairman)
Jian Guo (CEO)
ProductsPrivate equity
Venture Capital
Fund of funds
Real estate
AUMUS$43 billion (January 2023)
OwnersChina Merchants Group (50%)
GLP (50%)
Number of employees
260 (2020)
Websitewww.cmcapital.com.cn

China Merchants Capital (CMC) (Chinese: 招商局资本; pinyin: Zhāoshāngjú Zīběn) is a Chinese alternative investment firm founded in 2012 that is headquartered in Shenzhen and Hong Kong. It is currently a joint venture (JV) between China Merchants Group (CMG) and GLP.

In June 2021, Private Equity International ranked CMC as the largest private equity firm in Asia-Pacific based on total fundraising over the most recent five-year period.[1]

Background

CMC was originally the investment arm of CMG before being officially launched as a fully-fledged private equity manager in 2012.[1][2]

On 11 October 2019, GLP announced that it would acquire 50% of CMC from CMG. Going forward CMC would be co-managed by both CMG and GLP.[1][2][3]

As of November 2020, CMC manages 37 private equity funds in seven different sectors and has 260 employees. Its largest fund is the Yinhe Equity Investment Fund which is a fund of funds that invests in CMC funds. Its funds typically tend to have a seven-year term that comprises a three to four-year investment period, two years to three years for divesture and an optional one year add on.[1][2]

CMC's capital comes from both government entities and private businesses. Notable investors include financial institutions such as Agricultural Bank of China, Mizuho Securities and SoftBank Group.[2]

Notable deals

In November 2019, CMC and ESR Group launched the ESR Australia Logistics Trust, a A$350 million logistics real estate fund that would invest in Australian assets.[4]

In November 2022, CMC was exploring a takeover offer for Chinese data center operator Chindata. It was listed on the Nasdaq and was backed by Bain Capital.[5] In June 2023, CMC made a bid of $3.4 billion to rival Bain Capital's offer to privatize Chindata.[6] In August 2023, Chindata decided to go with Bain Capital's offer over CMC in a $3.16 billion deal.[7]

References

  1. ^ a b c d Lynn, Alex (1 June 2021). "PEI 300 2021: China's one-stop shops". Private Equity International. Retrieved 20 January 2024.
  2. ^ a b c d Lynn, Alex (12 November 2020). "China Merchants Capital: The largest PE firm you've never heard of". Private Equity International. Retrieved 20 January 2024.
  3. ^ "GLP and China Merchants Group Announce Strategic Investment Partnership to Co-Manage China Merchants Capital | GLP". www.glp.com. Retrieved 20 January 2024.
  4. ^ Tan, Su-Lin (12 November 2019). "ESR, China Merchants Capital Investment launch $350m logistics mandate". Australian Financial Review. Retrieved 20 January 2024.
  5. ^ Cao, Dong (1 November 2022). "China Merchants Exploring Takeover Bid for Bain's Chindata, Sources Say". www.bloomberg.com. Retrieved 20 January 2024.
  6. ^ Cao, Dong (7 August 2023). "Bain Capital Edging Closer to Chindata Take-Private Deal, Sources Say". www.bloomberg.com. Retrieved 20 January 2024.
  7. ^ Saini, Manya (12 August 2023). "Chinese data center operator Chindata to go private in $3.16 bln deal". Reuters.