Chenhui Langzi Consumer Upgrading Investment Fund Completes Fundraising, Accelerating Strategic Expansion in Medical Aesthetics and Lifestyle Sectors

VCBeat (WeChat: vcbeat) has learned that on January 16, Chenhui Capital officially announced the completion of fundraising for the “Chenhui Langzi Consumer Upgrade Investment Fund” (hereinafter referred to as “the Fund”).

The fund was established in December 2016, jointly initiated by Chenhui Capital and the listed company Langzi Shares. The fund revolves around the consumer upgrade industry, focusing onPursue growth-stage investments and M&A in niche sectors such as medical aesthetics, maternal and infant care, beauty and personal care, and the pet economy.。

Currently, the fund has successively completed investments in several outstanding companies in niche sectors, including Aimer, Tianwei Food, Zhongheng Pet, and McKai Intelligent Manufacturing, with its investment quota nearing exhaustion.

Notably, as the fund completed its fundraising efforts,Chenhui Capital also joined hands with Lancy Co., Ltd. to jointly complete a RMB 245 million investment in “Lancy Medical Aesthetics.”

As one of the investors in this round, Chenhui Capital will leverage its strengths on the capital side to provide comprehensive and professional post-investment services, accelerating Langzi Shares’ strategic layout in the “medical aesthetics” sector and facilitating the rapid growth of its medical aesthetics business.

“Lancy Medical Aesthetics” is a medical management platform focused on the medical aesthetic and plastic surgery industry, with core businesses including investment management in medical aesthetics, training and placement of medical professionals, and collaboration on new technologies.

Currently, it operates nine medical aesthetic institutions, covering cities such as Chengdu, Shenzhen, Xi'an, Changsha, and Chongqing.In the future, “Lancy Medical Aesthetics” will introduce more medical aesthetic brands that align with Lancy Group’s medical aesthetics strategy and business philosophy, further enhancing synergies among the various business segments of Lancy Group.

This is not the first collaboration between Chenhui Capital and Langzi Shares.

In 2015, at the inception of Chenhui Capital, Langzi Shares joined over a dozen other listed companies as limited partners (LPs) in the “Chenhui Phase I Growth M&A Fund.” After Chenhui successively invested in high-quality projects such as Ruoyuchen, BABO, Weimeng Media, and Xisi Cloud, achieving strong investment performance, the Chenhui team’s professional investment capabilities and post-investment management expertise earned the trust and recognition of its LPs.

As the “first listed company of high-end women’s apparel in China,” Lancy Co., Ltd. has, since proposing its long-term development strategy of building a “pan-fashion industrial internet ecosystem,” actively pursued strategic layouts in the sectors of infants and children, cosmetics, and medical aesthetics, while consolidating its core women’s apparel business.

In 2016, Lancy Co., Ltd. served as a cornerstone investor to deepen the cooperative model between the two parties,Co-founded the “Chenhui Langzi Consumption Upgrade Investment Fund” with Chenhui Capital, in the future, the fund will further leverage the synergistic effects of “capital-industry” integration to carry out more growth-stage and M&A investments.

“The PE + Listed Company” cooperation model has been deeply embedded in the DNA of Chenhui Capital. The funds established by Chenhui Capital in collaboration with listed companies are as follows:

1. “Chenhui Phase I Growth M&A Fund”: The limited partners (LPs) include more than ten listed companies and their actual controllers;

2. “Chenhui Langzi Consumption Upgrade Industry Fund”: Jointly initiated and established with Langzi Co., Ltd., focusing on growth-stage and M&A investments in the consumption upgrade sector;

3. “Chenhui Wangsu Information Industry Investment Fund”: Jointly established with Wangsu Science & Technology, it focuses on growth-stage and M&A investments in areas such as next-generation technology clusters, big data/cloud computing, and artificial intelligence.

In addition, nearly half of the companies currently in Chenhui Capital’s investment portfolio are co-invested with listed companies.

Mr. Yan Xiaoping, Founding Managing Partner of Chenhui Capital, believes that “as leaders in their respective niche sectors, listed companies not only possess abundant industry resources but also help funds gain a deeper understanding of the industry. In turn, funds, as professional investors, can assist listed companies in accelerating their strategic layouts. Meanwhile, for portfolio companies co-invested with listed companies, ‘M&A’ serves as an alternative exit route to IPO.”

In 2017, Chenhui Capital successfully exited two portfolio companies through all-cash acquisitions by listed companies. Looking ahead, Chenhui Capital will collaborate with more high-quality listed companies to integrate capital with industry resources, jointly empower its portfolio companies, and facilitate their growth and development.