Auster Fund I holds first close on $500m

Katharine Hidalgo
01 July 2020

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Auster Fund I has held a first close on more than $500m towards its target of $1bn.

A source close to the situation told Unquote that the firm was aiming for a 2021 final close.

Auster is currently working on a number of investments and is keen to achieve a deal before the end of 2020, according to the source.

Rothschild & Co, through its Merchant Banking business, owns 30% of Auster, alongside founder Jennifer Yu as the controlling shareholder.

Yu was previously the chairperson of Rothschild & Co Global Advisory in Greater China. In her prior position, Yu made investments such as Geely's acquisition of Volvo Car, ChemChina's acquisition of Pirelli, Dongfeng Motor's investment in PSA, and JIC's acquisition of SGD Pharma.

The Auster team is located across three offices in Shanghai, Hong Kong and London.

The fund's management fee, carry and hurdle rates are in accordance with market standards, according to the source.

Investors
A variety of investors including sovereign wealth funds, prominent financial institutions, industrial corporations and family offices have invested in the fund.

LPs hail from both China and internationally.

Investments
The fund will focus on cross-border opportunities between China and Europe.

The source told Unquote that the firm was not a distressed investor, but was entirely focused on profitable companies.

With a core focus in the industrial manufacturing, consumer and healthcare sectors, Auster's investment strategy is to invest in European businesses that either plan to benefit from Chinese growth potential, or expect to be part of inbound or outbound Chinese M&A. The fund will partner with other private equity sponsors or strategics.

The fund will make both majority and minority investments.

Auster intends to target equity tickets of $50-200m with the ability to commit larger amounts in conjunction with the fund's LPs.

People
Auster Capital – Jennifer Yu (founding partner, chairperson).