CDH, Legend in Touch deal

The China-focused firms have invested RMB500m in a biometric identification technology company for an undisclosed stake.

China-focused CDH Investments and Legend Capital have invested RMB500 million (€58.2 million; $75.5 million) in Live by Touch alongside China International Capital Corporation (CICC).

While a spokesman for Live by Touch confirmed the investment, he declined to disclose the stakes acquired by the consortium. Other parties could not be reached by press time.

Founded in 2006, Shanghai-based Live by Touch focuses on the technology of biometric identification. The company's main product – Pay by Finger – connects people's fingerprints to their bank accounts allowing customers to pay for goods by touching a finger print scanner, eliminating the need for cash or credit cards.

According to the company's website, thousands of shops and a number of banks have already used its Pay by Finger system.

CDH is currently in the market for its second RMB-denominated fund with a target of RMB10 billion. The fund, which expects a final close in the first half of this year, might again secure a commitment from China's Social Security Fund (SSF). In 2008, SSF committed RMB2 billion to the firm's first RMB fund, which targeted RMB5 billion.

Legend Capital is reportedly also raising a second RMB fund and a fifth USD fund this year with a combined target of more than $500 million. The firm's first RMB fund, which closed on RMB1 billion in October last year, saw an RMB300 million commitment from SSF.