2021.03.17
Recently, China’s leading brand acceleration group USHOPAL successfully completed the closing of its D round of financing of approx. USD100 million. This round of financing was led by FountainVest Partners and followed by Cathay Innovation Fund, United Media FOFs, Shanghai SAIC Hengxu Investment Management Co., Ltd. and Volkswagen Zhongsong Fund. JunHe LLP acted as the exclusive legal counsel to FountainVest Partners participated in the investment initiative on its behalf.
As a leading company in the luxury beauty industry, USHOPAL has rapidly transformed international niche neo/luxury beauty brands from “0” into an upstar in the luxury beauty path, making China not only the global sales center but also the best-selling region of these brands and at the same time making USHOPAL the core force guiding the global luxury beauty positioning and product matrix output. USHOPAL’s offline channel Bonnie & Clyde ("B&C") has become the leading brand platform for the neo/luxury beauty collection stores in China.
The complexity and difficulties of the Matter lie in the following 3 aspects: (1) Many target companies are involved in, and the time is tight and the pace is fast for, the Matter. JunHe team efficiently completed its legal DD investigations, drafting of transaction documents, negotiations, etc. (2) In this round of financing, the target companies simultaneously carried out the relatively complex structural adjustments such as dismantlement of overseas red-chip structures and reorganization of domestic companies. In addition to the regular legal DD issues, JunHe team also needs to issue its opinions on legal compliance of reorganization arrangements within a relatively short period of time. In addition, as the target companies have many related transactions, the issues such as the identification of related parties and the impact of related transactions on the companies’ future listing have also increased the complexity of JunHe team’s legal DD investigations. (3) As the Matters involves more than a dozen entities including the founders, the targets companies, the seed-round investors, the A-round investors, the A+-round investors, the B-round investors, the C-round investors and the current-round investors, the interests of all parties that need to be balanced are extremely complicated and difficult to negotiate, JunHe team assisted the Client to conduct a comprehensive coordination and negotiation on the different demands of the parties, and sought the compromises or flexible arrangements acceptable to all the parties to the deals from the perspective of the interests of the investors.
The lead partners of this project were LIU, Ning, the lead partner of the business concentration was CAI, Jing (Cathy).
