China-focused alternative asset manager CDH Investments said on Tuesday that its second mezzanine fund has reached the first close at 1 billion yuan ($136.7 million), roping in several state capital platforms among its list of fund sponsors.
CDH, however, did not disclose the timeline for the final close or the target size of the fund that targets opportunities in China’s Internet data centres (IDC), as such infrastructure becomes indispensable for the country’s AI superpower ambition, according to a company release.
A local media report said the fund is expected to hit the final close this year, with a target size of 2.5 billion yuan ($341.8 million).
Several insurance firms, state capital investment platforms, and university endowments plan to commit capital to the second fund after the first close, per the release.
The firm’s first data centre-focused fund was launched in 2020. The 2-billion-yuan maiden fund has realised an annual cash distribution to limited partners at no less than 8% during the investment period. As of 2024, the 2020-vintage fund had generated a distributions-to-paid in capital (DPI) of around 0.7x, per the release.
CDH said the firm has invested in over 13 IDC projects, with total investment accumulating to over 5 billion yuan ($687.6 million), since 2018. Established in 2002, CDH Investments invests across private equity, venture and growth capital, private credit, public equities, and real assets, with over $20 billion of assets under management, according to its website.
With offices across Hong Kong, Beijing, and Singapore, the firm has since backed over 350 companies, of which over 100 have gone public.
