An equity investment of up to $40 million in CDH VGC Fund II, L.P. (_VGC Fund II_ or _the Fund_), a targeted $500 million People's Republic of China (_PRC_) focused venture and
growth capital fund designed to make equity investments in sectors focusing primarily on healthcare, supply chain and/or consumer, and artificial intelligence & technology (_AI+_).
| Project Name | CDH VGC Fund II, L.P. | |||||
| Project Number | 53185-001 | |||||
| Borrower/Company | CDH VGC Fund II, L.P. |
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| Country | China, People's Republic of |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | No gender elements | |||||
| Responsible ADB Department | ||||||
| Responsible ADB Division | ||||||
| Responsible ADB Officer | Teo, Yee Hean | |||||
| Project Sponsor(s) | ||||||
| Description | An equity investment of up to $40 million in CDH VGC Fund II, L.P. (_VGC Fund II_ or _the Fund_), a targeted $500 million People's Republic of China (_PRC_) focused venture and growth capital fund designed to make equity investments in sectors focusing primarily on healthcare, supply chain and/or consumer, and artificial intelligence & technology (_AI+_). |
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| Objectives and Scope | The proposed investment in VGC Fund II will provide about 20 private companies with growth capital to help fast track their development. In doing so, the fund will help increase the depth and diversity of venture and growth capital business models, encourage entrepreneurship, and support the transition of the PRC economy from one focused on manufacturing to one driven increasingly by innovation and technology. | |||||
| Linkage to Country/Regional Strategy | The investment is aligned with the operational priorities of ADB Strategy 2030, including addressing remaining poverty and reducing inequalities by generating quality jobs, improving education, and achieving better health for all. Strategy 2030 also supports using private equity funds as an important modality to extend ADB's reach because of their significant leveraging and mobilizing effects, as well as to promote financial inclusion. |
| Safeguard Categories | |
|---|---|
| Environment | FI |
| Involuntary Resettlement | FI |
| Indigenous Peoples | FI |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | 04 Jul 2019 |
| Credit Committee Meeting | 06 Sep 2019 |
| Approval | 18 Oct 2019 |
| Last PDS Update | 18 Oct 2019 |
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