Loyal Valley Capital closes $465 million for its Second Fund to invest in consumer, healthtech and fintech startups in China

Loyal Valley Capital (LVC), a private equity firm that invests in middle market companies in China, announced yesterday that it has closed $465 million  for Loyal Valley Capital Advantage Fund II LP (“LVC USD Fund II”). The funding includes $440 millions of third-party limited partner commitments and approximately $25 million from the general partner.

Founded in 2015 by Andy Lin. LVC is an independent, partner-owned firm with an extensive network spanning public and private companies across China with preferred access to C-level professionals and the most attractive deals in the country. LVC currently manages three private equity funds with assets under management of over $1.6 billion. LVC has a growing team of 50 professionals based in Shanghai, China. Andy is also the founder of China Universal Asset Management (“CUAM”), one of China’s top asset managers with over US$70B in AUM.

“LVC USD Fund II will continue to follow LVC’s disciplined “value investing” strategy that has been successfully applied by LVC since its inception in 2015. LVC USD Fund II will invest in middle market companies positioned to benefit from secular industry transformation in China. It will continue to focus on LVC’s core areas of domain expertise: New Consumer (Media & Entertainment and Education), Healthcare, Specialty Industrials and Financial Services,” the firm said.

The investors in Fund II are a geographically diversified group of long-term oriented institutional investors. They comprise sovereign wealth funds, fund of funds managers, private banks, and family offices from across the Americas, Europe and Asia. All institutional investors from LVC USD Fund I have reinvested into this second fund.

“We appreciate the extraordinary support from our existing limited partners and the expansion of our investor base amongst leading global institutions. The focus of this group allowed us to move quickly to close Fund II this year. We believe that our truly local, grassroots team and strong entrepreneurial culture focused on continuous improvement will continue to deliver superior performance for our investors,” said Andy Lin, Partner & Founder of LVC.