MILESTONE CHINA I AND II
To date VenFin has invested US $4.3 million in Milestone China I and the fund has already returned US $3.3 million to VenFin from investments exited or partly exited. The principal objective of MCM is to achieve superior medium-term capital appreciation in its funds through direct investments in well-established, highgrowth companies seeking expansion or acquisition capital in China. All the executive team members of MCM are mainland Chinese with extensive investment and operational experience in both China and the USA.
Overview of the year to 30 June 2007
Milestone China I’s commitment period ended in May 2007, hence MCM does not foresee any further investments to be made by this fund. Seven investments have been made to date, three of which have been exited. The most recent investment of US$10 million was in Trina Solar, a solar photovoltaic manufacturer in China, listed on the NYSE in December 2006 at US$17 per share. At the end of June 2007, the share traded at US$54. VenFin has also invested US$1.5 million directly alongside the fund in addition to its exposure in Trina Solar via Milestone China I.In the period under review the fund exited its very successful investment in Focus Media Holding Limited, which operates the largest out-of-home advertising network in China using television displays. Apart from Trina Solar, the three remaining investments comprise a Beijing-based distributor of imported medical equipment, a xanthan gum producer (xanthan gum is used as an emulsifier in food) and a mobile phone handset design company.
To date Milestone China II has received commitments of US $247 million from investors. Milestone China II’s first investment of US$15 million was in CDMTV, the largest digital mobile television advertising network operator in China. VenFin also made a direct investment of US$10 million in CDMTV.