Loyal Valley Capital Raises US$465 Million For Its Second USD Fund

SHANGHAI,Dec. 4,2019 --Loyal Valley Capital ("LVC") today announced that Loyal Valley Capital Advantage Fund II LP ("LVC USD Fund II") held a final close at $465 millionin capital commitments,including $440 millions of third-party limited partner commitments and approximately $25 million from the general partner. Demand from investors was strong,withLVC USD Fund II oversubscribed at its hard cap of $440 million of limited partner commitments. It is LVC's second US dollar-denominated fund,after closing of Loyal Valley Capital Advantage Fund I LP ("LVC USD Fund I") at $390 million in 2018.

LVC USD Fund II will continue to follow LVC's disciplined "value investing" strategy that has been successfully applied by LVC since its inception in 2015. LVC USD Fund II will invest in middle market companies positioned to benefit from secular industry transformation in China. It will continue tofocus on LVC's core areas of domain expertise: New Consumer (Media & Entertainment and Education),Healthcare,Specialty Industrials and Financial Services.

The investors in Fund II are a geographically diversified group of long-term oriented institutional investors. They comprise sovereign wealth funds,fund of funds managers,private banks,andfamily offices from across the Americas,Europe and Asia. All institutional investors from LVC USD Fund I have reinvested into this second fund.

"We appreciate the extraordinary support from our existing limited partners and the expansion of our investor base amongst leading global institutions. Thefocus of this group allowed us to move quickly to close Fund II this year. We believe that our truly local,grassroots team and strong entrepreneurial culture focused on continuous improvement will continue to deliver superior performance for our investors," said Andy Lin,Partner & Founder of LVC.

Eaton Partners,a Stifel Company,acted as the exclusive global placement agent for LVC USD Fund II. Kirkland & Ellis LLP provided legal counsel.

About Loyal Valley Capital

LVC (https://www.loyalvalleycapital.com/en/) is a leading private equity firm that has actively been investing in high-quality middle market companies in China since 2015. LVC is an independent,partner-owned firm with an extensive network spanning public and private companies across China with preferred access to C-level professionals and the most attractive deals in the country. LVC currently manages three private equity funds with assets under management of over $1.6 billion. LVC has a growing team of 50 professionals based in Shanghai,China.