China Everbright Limited, a financial services arm of state-owned conglomerate China Everbright Group, has teamed up with its AIoT-enabled smart city platform Terminus Technologies to launch a private equity fund that targets a corpus of 10 billion yuan ($1.4 billion).
The new fund, dubbed “CEL AI Economy Fund,” will be a series of funds operated in both RMB and US dollars, said China Everbright Limited in a recent statement.
It will focus on equity investments in businesses that apply Artificial Intelligence of Things (AIoT) and next-generation information and communications technology (ICT) in industries like smart city, autonomous driving, smart healthcare, intelligent transportation, and smart retail, among others.
The CEL AI Economy Fund already garnered 7 billion yuan ($1 billion) from institutional investors, while the US dollar tranche is currently under preparation and is expected to be launched soon.
The introduction of the investment platform is part of China Everbright Limited’s broader plan to build its capabilities in intelligent urban infrastructures powered by AI, 5G, Internet of Things (IoT), cloud computing, and other advanced technologies, said the company.
It will also accelerate the global deployment of Terminus’ AI CITY network, which is the company’s initiative to provide governments and enterprises with AIoT-enabled solutions for the intelligent management and operations of public buildings, utilities and environment.
“As China’s central government proposed to accelerate the new infrastructure construction, its featured industries such as 5G communication technology, AI, Internet of Things and data centres have become the new essential production factors,” said Zhao Wei, executive director and CEO of China Everbright Limited, in the statement.
“This will drive social and economic development and innovation in many aspects and empower industries in the intelligent new economy,” said Zhao.
Terminus was created in November 2015 by China Everbright Limited to deliver city-level AIoT-powered intelligent solutions.
In August 2019, the company secured 2 billion yuan ($286 million) in a Series C round led by the parent company. Chinese e-commerce giant JD.com, real estate developer Wanda Group, and voice recognition technology developer iFlytek all participated in the previous round.