CGN Fund III hires Cantor Fitzgerald as global advisor 

15 November 2018 - 12:00 am UTC

CGN Capital Partners Fund III has hired Cantor Fitzgerald as its global financial advisor for the sale of its renewables asset, Inframation understands.

The New York-headquartered financial services firm is expected to advise the manager and outlineproposals on the processes for carrying out the asset sale, as the RMB 3.69bn (USD 556.3) China renewables fund starts returning capital to its LPs.

Hari Chandra, global co-heads of power, energy and infrastructure for Cantor Fitzgerald who joined the firm from Jefferies in April this year will lead the transaction. Michiel Prompers, the bank’s managing director based out of Singapore, will provide on-ground support.

The CGN Fund III is overseen by CGN Private Equity Fund Management, a unit of state-owned China General Nuclear (CGN), and JIDA Capital Partners, owned by HRL Morrison.

The fund, which reached final close in June last year, counts an extensive portfolio of onshore wind, solar PV and other renewable assets in China. All of the fund’s capital will be fully deployed by the end of 2018 before it starts raising the fourth fund.

CGN had held talks with several international banks and received feedback about the pre-marketing of the fund’s assets, which started at the beginning of the year.

Cantor Fitzgerald was selected from among three other candidates shortlisted by the fund. CGN is currently finalising the terms with the New York-based investment bank, this news service learnt.

The fund expects its assets to appeal to long-term investors including domestic and overseas life insurance companies and pension funds. In addition to two of China’s largest insurance companies – China Life and Ping An – foreign investors have also been tipped as potential buyers.

The fund has been investing in a further 300MW of projects – mostly onshore wind – over 2H18. While onshore wind assets, particularly in eastern and central China, is among the preferred investments for the fund, it has also invested in two of the country’s largest utility-scale solar projects launched by the government under its billion dollar “solar poverty alleviation initiative.”

Before joining Cantor Fitzgerald, Chandra had served as the joint global head of power, renewables and infrastructure at Jefferies in London with stints at Bank of America Merrill Lynch and Lazard LLC. Cantor Fitzgerald expanded into power, energy and infrastructure advisory in April this year, adding a team of professionals in New York, London, Hong Kong and Dubai.

CGN Fund III’s LPs are Agricultural Bank of China, CGN, China Cinda Asset Management, China Huarong Asset Management, China Pacific Insurance, China Three Gorges, ICBC, PICC, Postal Savings Bank of China and Utilico Emerging Markets.

For its fourth fund, the manager of the fund expects to see more LPs from outside China. It has already received interest about its planned Fund IV from several global LPs looking to invest in China.

CGN

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