China-focused private equity fund manager Hony Capital has reached a first close for Hony Capital Fund VIII with US$1 billion in capital commitments. The vehicle, which has a total target of US$2 billion, comprises pools of capital for both US dollar and Chinese renminbi and aims to raise US$1 billion for each pool. The two pools will then invest in the same assets based on their respective portions of the overall fund. Hony plans to deploy half of the fund in Chinese state-owned enterprises that need to be reorganized. It will also invest in private companies that are undergoing restructuring or are in distress.