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Received more than 11 times oversubscription, TWI successfully listed on the main board of Taiwan Gretai Securities Market (“GTSM”)

Dec 3, 2013

The CID Group (“CID”) is pleased to announce that TWI Pharmaceuticals, Inc, (“TWI” or “the Company”) (Bloomberg Ticker: 4180TT), a leading specialty pharmaceutical company, has successfully transferred from the emerging board and listed on the main board of Taiwan Gretai Securities Market (“GTSM”) on December 3rd , 2013.

The listing of TWI received more than 11 times oversubscription to the issuance of 12.9 million new shares with approximately NTD3.3 billion of capital raised. The trading price of the Company hiked more than 40% or NTD100 above the listing price NTD248 during the first day of trading, and closed at NTD330. The closing market cap of the Company reached NT$37 billion (US$1.3 billion). Based on the closing price on December 3rd, CID has achieved approximately 5.6x times on the investment of TWI.

Founded in 2010, TWI is the first Taiwan-based pharmaceutical company that focuses on developing and manufacturing Paragraph IV and non-Paragraph IV drugs with high technical barriers. The core team was led by renowned Taiwanese scientists that have extensive overseas experience in specialty drugs development and strong partnership with marketing channels in the US and EU. The Company is highly recognized for its unique R&D capability and focus on specialty products with higher margins than normal generic drugs. The Company was approved for listing on the Emerging Board in 2012, one year after its establishment, and achieved listing in the Main Board in the subsequent year.

The Company has filed 9 generic drugs under ANDAs to the FDA, and expects to grow its revenues by more than double and become profitable within the next two years upon its new products launching. The Company currently posted the revenues of NT$192 million and net loss of NT320 million for the cumulative three quarters.

CID invested in TWI as one of its first institutional shareholders in 2012, through the Greater China Venture Capital Fund III. The investment was based on CID's value chain investment strategy to identify leading local market players and create value via integration of global resources. CID has 11 portfolio companies in healthcare sector across China, Taiwan and the US. Over the past 15 years, the Firm has achieved 79 exits from its 171 portfolio companies.

Closes oversubscribed US$ 100M fund, with 50% GP commitment - The CID Group Completes Greater China Fund IV fundraising

Aug 16, 2013

The CID Group (“CID” or “The Firm”) today announced the first and only close of CID Greater China Fund IV (“Fund” or “CID IV”). The Fund is a successor fund to the US$400M CID Greater China Venture Capital Fund III. The Firm kicked off the fundraising in March, and received over US$ 425M demand from both existing and new investors within less than 4 months. With goals to better align GP-LP interests and to deliver superior returns, the general partners worked closely with the limited partners and several pipeline investments’ management teams, and devised an innovative structure in which the GP will commit 50% of the new fund and finalize the fund size at US$100M.

“We are truly gratified by the confidence and trust from our limited partners, most of whom have supported CID for many years. The successful closing of the new Fund is an endorsement of our investment model and track record for the past one and a half decades,” said Steven Chang, the founder and managing partner of The CID Group.

Founded in 1998, CID is a leading private equity and venture capital firm covering both Taiwan and China. The Firm is managed by one of the region’s largest and most experienced investment teams and retired CEOs of multi-billion market cap international companies. CID has eighty five local professionals operating in Taipei, Shanghai, Beijing, Chongqing and Silicon Valley. Supported by the sovereign wealth funds, state pension plans, financial institutions, industrial corporations, endowments, foundations and family offices in the United States, Europe and Asia, CID has raised Fund I of US$ 110M in 2004, Fund II of US$ 225M in 2007, Fund III of US$ 400M in 2010, all of which were oversubscribed and closed at the hard cap.

The new fund will be different from prevailing fund structures in the market. The GP commits 50% of the capitals to invest in every deal alongside with the limited partners. The Firm also develops a unique fund structure to generate higher returns and better capital efficiency for the limited partners, and achieve stronger alignment of interests among the investors, general partner and portfolio companies.

“We have been a long-time partner with CID and are delighted to see CID going from strength to strength. CID could have raised a new fund similar in size to CID III, but chose instead to cap CID IV to US$ 100m and increase the general partner’s commitment to 50% of the fund. This is rare in the private equity world and is a clear reflection of CID’s confidence in its ability to deliver stellar returns”, said Yewhong Goh, Managing Partner of Axiom Asia.

"We have high conviction on CID because of its systematic and thematic approach to making investments, and its experienced team with a long-term mindset", noted by a leading Asian Endowment.‬

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“We appreciate the support from the limited partners in our continued pursuit of the highest standard of integrity, commitment and excellence.” Mr. Steven Chang added: “The new fund structure demonstrates our commitment to building a long-term partnership with both our investors and investee companies which we believe will contribute to more consistent and outstanding performances.”

CID IV will continue to carry out the investment strategy since the Firm’s inception –integrating global resources to create synergistic business. The strategy focuses on tracking global industry migration trends, identifying first-mover opportunities in the region and investing in industrial value chains. The Fund invests in multi-stage, multi-sector and industrial integration opportunities in China and Taiwan. CID has invested in 192 portfolio companies across technology, education, consumer retailing and services, healthcare, mobile internet and big data sectors during the past fifteen years.

“We are excited to continue our partnership with CID and appreciate the efforts made to find the best balance of capital and opportunity in the pursuit of strong returns. We fully support the plan for CID IV which takes into account alignment of interest with LPs,” said Joseph Manzinger, CEO of the Hillman Company.

Edward J. Grefenstette, the President and Chief Investment Officer of The Dietrich Foundation, noted: “The Dietrich Foundation is exceedingly pleased to continue our partnership with CID. We were deeply impressed with the team’s disciplined, well-conceived plan to structure Fund IV to seize market opportunities generating the most attractive risk-adjusted returns.”

“We are a long-term business partner with the entrepreneurs, and we built CID to be a resources integration platform for our portfolio companies to create long-term value and pursue exceptional growth,” said Charles Chang, co-founder and senior partner of CID. The Firm has achieved an outstanding and consistent track record of 79 exits (44 IPOs and 35 M&A/trade sales), regardless of multiple economic cycles. This year, the Firm plans to announce 5 IPOs including one Chinese company listing in Taiwan, one Taiwanese company listing in China and three other IPOs of technology and healthcare companies in Taiwan.

David D. Gonino, the Chief Investment Officer of The Alfred I. duPont Trust, stated: “The duPont Trust is excited to commence a partnership with CID. We try to align ourselves with a select group of exceptionally high quality partners around the globe, and our commitment to Fund IV reflects the high degree of conviction and confidence we have in the CID team.”