Orchid Asia Closes Fourth Fund

Filed in archive Private Equity on February 26, 2008

Hong Kong-based private equity firm orchid Asia Group Management Ltd. has closed its fourth private equity fund focused on China, according to a press release from the company last week. The new fund had an original target of $350 million but closed last week with $420 million in capital from investors in Asia, Europe, the US and the Middle East - investors that include private banks, university endowments, insurance companies, and others.

Orchid managing director Gabriel Li works out of the company's office in San Francisco, but the firm also has offices in Hong Kong, Shanghai, Beijing, and Guangzhou. According to Asian Investor, Li says the firm has a long history in China as one of the first private equity funds operating there. Orchid has been in China for 16 years.

Orchid has seen some impressive successes in its time in China. The company led the first round investment for Ctrip.com International (Nasdaq:CTRP). That project returned over 20 times the initial investment. Ctrip is now a leading travel service provider specializing in discounted air ticket and hotel reservation in China.






Orchid also invested in the first round of Eachnet, the largest online auction company in China, which was subsequently sold to eBay for about a five fold return.

In a statement, Li said that Orchid was grateful for the continuing support of its investors."We will continue to deliver successful investments in the tremendous growth opportunities arising in China. We are excited to see the number of investment opportunities in such an active and evolving economy in China," Li said.