Chinese investment firm V-Capital secures $235m for new RMB fund

M&A and private investment-focused V-Capital, which was incubated by Shenzhen-listed Huaxi Holding in 2015, on Monday announced that it has secured as much as 1.5 billion yuan ($235 million) for a new RMB-denominated fund. 

The firm did not specify if the fund had reached the final close.  

The fund attracted commitments from a slew of government-led industry funds and state-backed conglomerates apart from its existing limited partners (LPs). 

V-Capital plans to invest in sectors such as healthcare, TMT, culture services, semiconductor, new-generation information technology, smart manufacturing, new energy, among others. 

V-Capital manages over 20 billion yuan ($3.1 billion) in assets.

Some of its prominent portfolio companies include leading power battery manufacturer CATLS, education startup Only STEAM, medical devices provider Mindray, mobile games developer IDreamsky, Asieris Pharmaceuticals, among others.  

Additionally, V-Capital also has been active in mergers and acquisitions by providing intermediary support to enterprises. In 2019, V-Capital assisted Century Huatong Group in the acquisition of Shanda Games for 29.8 billion yuan ($4.7 billion). During the same year, it also facilitated the transaction in which Jiangsu Shagang purchased the London-based data centre Global Switch for 56 billion yuan ($8.8 billion). 

V-Capital’s other major shareholders include state-owned Guolian Group (34.43%), Anhui Transportation Holding’s industry fund (10.345%) and Wuxi Huikai Investment Management (3.44%). 

In recent fundraising by Chinese funds, cross-border VC Glory Ventures completed a $120-million dollar fund while Yingke PE hit the final close of a new RMB fund at 10 billion yuan ($1.6 billion).

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