Carlyle Asia Growth Group Invests More Than US$60 Million in Three High Growth Chinese Companies; Investors Remain Optimistic about Chinese Investment Opportunities
Beijing – Global private equity firm The Carlyle Group announced today more than US$60 million of investments in three high growth Chinese companies. The transactions come just four months after the closing of Carlyle Asia Growth Partners IV (CAGP IV), the fourth fund of the Carlyle Asia Growth Group, which raised $1.04 billion in 14 months despite a difficult fund-raising environment. Further details of the transactions were not disclosed.
The deals comprise investments in Nantong Rainbow Heavy Industry, China Agritech and iTour, all strong performers in their respective sectors of heavy industry, agriculture and consumer. The transactions reflect investors’ continuing confidence in the Asian markets and their ongoing enthusiasm for investment opportunities in China.
“We are delighted to announce these three new investments only four months after the closing of our fourth growth capital fund, Carlyle Asia Growth Partners IV. These deals are further evidence of our dedication to the Chinese market and the growth potential our investors see in Chinese small and medium-sized high growth enterprises,” said Wayne Tsou, Managing Director and Head of the Carlyle Asia Growth Group.
“These three companies hail from different sectors, but have shared traits that reflect Carlyle Asia Growth Group’s core investment strategy – a proven business model and rapid growth, coupled with a solid leadership team and a focus on long-term development in domestic and overseas markets,” added Tsou.
Carlyle Asia Growth Group’s investment philosophy is sector-agnostic, with investments across more than ten industries, including energy, consumer, technology, business services, education, industrial, healthcare, real estate and media. Eighty percent of these investments have been made in China or India. Since CAGP IV closed in July, the group’s portfolio companies have experienced strong performance and stable growth, attracting more investor attention to the Chinese market.
These most recent investments will further enable Nantong Rainbow Heavy Industry, China Agritech and iTour to build leading positions in their respective industries, boost market share and increase their capabilities in branding, operations management, sales & marketing, and distribution.
Nantong Rainbow has emerged during its five-year history as the foremost internationally-positioned Chinese supplier of ship components and port and marine-related large steel structures. China Agritech, Carlyle Asia Growth Partners’ first investment in the agriculture sector, has for many years provided Chinese farmers with innovative and high-value agricultural products and service offerings. A strong performer in e-tourism services, iTour has a unique, innovative and competitive business model developed for the digital age.
“We are fully leveraging the global resources of The Carlyle Group to back our partner companies with both capital and management expertise. Most importantly, we will continue to seek opportunities to help Chinese enterprises with unique business models and strong growth strategies to expand in an increasingly globalized economy,” added Tsou.
* * * * *
About Nantong Rainbow Heavy Industry Co., Ltd
Nantong Rainbow Heavy Industry Co., Ltd (RHI) is a Sino-foreign joint venture established and invested in by Nantong Van Industry Co., Ltd. Founded in September 2003, RHI is located in one of China’s state-level development zones – the Nantong Economic and Technological Development Zone in Jiangsu Province. With the support of its strong research and development capabilities and team, RHI produces ship accessory products such as hatch covers and steel structures for the construction industry and port machinery. With high-level technical support and service offerings, RHI will continue to provide customers with systematic solutions and high-quality products.
About China Agritech Co., Ltd
China Agritech Co., Ltd specializes in R&D, production and marketing, as well as technical consulting services for high-tech green agricultural products in China. China Agritech is focused on improving productivity and the quality of life for farmers in China. They provide farmers with innovative, value-added and cost-effective products and services to help farmers achieve sustained growth in their income. The company has established five production bases in Harbin, Hebei, Anhui, Chongqing and Xinjiang. With tens of thousands of agricultural marketing professionals, their sales network spanning the whole country is continuously growing.
About iTour Co., Ltd
iTour Co., Ltd was established in 1998, and after over ten years of continuous integration and innovation, it has developed into a comprehensive tourism services provider, combining traditional industry offerings with advanced technology. In its short history, its service range has expanded from a regional service network to a nationwide one. Its business model has also changed from traditional agent-based distribution to multi-channel model. The company’s five major channels are distribution, direct marketing, partnerships, branches and terminals. From its headquarters in Guangzhou, iTour Co., Ltd has set up 25 branches in major Chinese cities, including Guangzhou, Shenzhen, Shanghai, Beijing and Hong Kong. Currently, iTour’s services cover more than 300 cities and they are able to provide online business travel booking service for their 1.5 million members.
# # #