China-focused buyout shop Trustar Capital has reached the final close on its latest flagship after nearly four years in market, Private Equity International understands.
Trustar Capital Partners V will close on $1.2 billion later this month, according to a source with knowledge of the matter. The fund was launched in December 2021 with a $1.3 billion target, PEI data shows. CPP Investments – an existing Trustar LP – committed $100 million.
Fund V is less than half the size of its predecessor, CITIC Capital China Partners IV, which closed on $2.8 billion in 2019.
Trustar declined to comment.
The news comes roughly a year after the close of a $1 billion continuation fund enabling Trustar to retain its stake in the mainland China and Hong Kong operations of McDonald’s, Reuters reported in November.
Hong Kong-headquartered Trustar was founded in 2002 and was known as CITIC Capital Partners before rebranding in 2021. The firm manages $9.3 billion across 19 private equity funds spanning various markets and strategies, according to its website. It has made 100 investments to date, 70 of which were buyouts.
Trustar is seeking ¥40 billion ($271 million; €231 million) for Trustar Capital Japan Partners IV, which launched last year, PEI data shows. In August, the firm collected 4.5 billion yuan ($632 million; €539 million) for CITIC Capital RMB-Denominated Buyout Fund.
The slow progress of its latest USD-denominated fund reflects the difficulties facing China-focused private equity firms in recent years. Geopolitical tensions, the pandemic, macroeconomic uncertainty and regulatory shifts have all contributed to a decrease in Western appetites for what was once the world’s second-largest private equity market.
North American and Chinese LPs made up more than 70 percent of Trustar’s LP base as of 2019, PEI reported at the time.
In light of recent challenges, GPs operating in China have been encouraged to develop a buyout model that is better suited to the market’s idiosyncrasies. Growth deals continue to dominate the local private equity market, accounting for 62 percent of total deal value in 2024, according to Bain & Co. Buyouts accounted for 29 percent of deal value, 15 percentage points higher than 2023, while deal count remained flat.
