Primary Market Investment
We can say with pride that through a diversified fund structure, as well as our market-leading full value chain capabilities and cross-border offerings, CEL is now among China’s top alternative asset management institutions in the primary market. Our ability is mainly reflected in the following aspects:
- A diversified fund structure
Based on a diversified fund structure, we set up funds by sector (investing for the long term in real estate, healthcare and new energy and expediting planned investments in the highly promising consumer, TMT and pan-media industries) and by investment stage (start-up stage, private equity stage and maturity stage). This allows us to raise funds flexibly to meet the investment needs of various types of limited partners (LP). We also emphasise the need for a division of labour among investment staff. In addition, our fund managers employ sustained research as part of their consistent, long-term focus on a sector or even a subsector, closely tracking and investigating to develop a higher level of investment expertise as well as the ability to make decisions in a more efficient and professional manner.
- Full value chain capabilities
After years of painstaking effort across a number of industry segments, CEL has developed full value chain capabilities for systems within and outside the company, including the precision instruments, real estate and healthcare sectors.
- Cross-border offerings
Building on CEL’s strong domestic resources, we continued to plan our crossborder manoeuvres from a strategic China perspective to capture a wealth of overseas M&A opportunities and continuously improve the post-investment valuation of our projects.
Funds in cooperation with multiple GPs
We engineered a major breakthrough in fundraising by working with multiple general partners (GPs) to access new industries and markets in highly efficient, low-risk manner.
Working with fund managers who offer brand influence and proven track records is one way the Group has pursued full-scale investment expansion in new industry segments. An example of this is Everbright-IDG Industrial Fund (formally known as IDG-Everbright M&A Investment Fund), a fund that was established in partnership with IDG Capital in June 2016. Since then, the fund has completed final investments across a couple of projects, targeting investees in Germany, the US and China.
The Group also set up a new industry investment fund – Everbright Zhongying Capital in further cooperation with Focus Media, a leading media company. By integrating CEL’s funding and branding strengths, the Fund can benefit from an enriched source of industry projects and seize industry consolidation opportunities across the upstream and downstream value chains.