Hong Kong-listed Chinese marketing solution provider Activation Group has teamed up with state-owned investment platform Shanghai Innovital Capital Investment Management Co., Ltd (SHIVC) to set up a 1 billion yuan ($143 million) industry fund, per a stock exchange filing.
Activation will infuse a total of 201 million yuan ($29 million) into the fund, according to an agreement inked between both parties on Monday. The fund is mandated to invest in sectors including fashion, sports, entertainment, digital and creative marketing.
Concurrently, Activation, through its two shareholders Brightly Sky Company Limited and Activation One Limited, has also agreed to sell an aggregate of 14.42 per cent equity interest to SHIVC’s unit Shanghai Innovital Capital. With this deal, SHIVC will be a new shareholder in Activation.
Activation develops integrated marketing solutions to support luxury brands in Greater China and the Asia Pacific region. Its services include experiential marketing, digital and brand communication, public relations, sports and entertainment. The group got listed in Hong Kong in January 2020.
SHIVC Investment will enable Activation to extend its business presence with the help of government support.
Launched by the Shanghai Municipal Government in 2015, SHIVC Investment is engaged in equity investment and investment management. Through its vehicles, it has invested in 780 startups and 796 incubation projects to date. SHIVC Investment has over 50 billion yuan ($7 billion) in assets under management.
Sequoia Capital China, along with New Margin Ventures, had participated in Activation’s Series B and C rounds in 2014 and 2015, respectively.