BA Capital closes second USD fund at $225M, beating $150M target
What's the deal? Shanghai-headquartered BA CapitalDealroom has a profile for this one. Try Dealroom → has reached the final close of its second flagship US dollar fund at $225 million, well above its initial $150 million target. The consumer-focused venture firm drew commitments from institutional investors, funds-of-funds, and family offices for BA Capital Fund II.
What's the endgame? Founded in 2016 by managing partners David He and Michael Zhang, BA Capital invests exclusively in the consumer sector. Its portfolio includes tea brand HeyTea, coffee chain M Stand, fast-fashion company Urban Revivo, and snack and beverage retailer Busy Ming Group.
The firm is best known for early-stage bets on Hong Kong-listed Labubu plush toy maker Pop Mart and luxury jewellery brand Laopu Gold.
Why now? BA Capital's portfolio is heading toward the public markets. Yuanji Food Group, which runs over 4,200 dumpling shops in China and overseas, filed to list on the Hong Kong Stock Exchange in January, and confectionery maker Amos Food Group filed for a Hong Kong IPO in April.
Last month, BA Capital and Decathlon PulseDealroom has a profile for this one. Try Dealroom →, the investment arm of French retailer Decathlon, each took a minority stake in British folding bike maker Brompton to back its global growth.
Eaton PartnersDealroom has a profile for this one. Try Dealroom →, a Stifel company, acted as exclusive global placement agent, while law firm Cooley provided legal advice.
The signal: Beating a fundraising target by 50% signals durable LP appetite for the consumer sector, even as some regional markets tighten. With multiple portfolio companies queuing for Hong Kong listings, BA Capital is betting that consumer brands remain a reliable path to exits.
Read more: dealstreetasia.com
Image credit: BA Capital
