Jiangsu High-Tech Investment Group (Govtor Capital) has tied up with Govtor-backed Addor Capital and state-owned Changzhou Industrial Investment Fund to launch a 1-billion yuan ($143 million) innovation fund, according to a company statement on Thursday.
The parties on Wednesday signed a strategic agreement to that effect. The vehicle will target a debut size of 500 million yuan ($72 million). Addor declined to disclose more details.
The fund is called Changzhou Govtor Addor Innovation Fund, and Addor will act as its fund manager.
Govtor Capital is the majority shareholder in Addor Capital holding 35 per cent stake.
The fund is designed to support the transformation of smart manufacturing in Changzhou. The fund will invest in high-end equipment, clean technology, AI, new-generation IT and new materials.
Managed by Jiangsu Provincial Government State-owned Asset Supervision and Administration Commission, Govtor Capital is a financial investment group. As of March 2020, it has 106.6 billion yuan ($15 billion) in assets under management. It has backed nearly 800 startups and has facilitated 179 companies to get listed in China and overseas.
Previously, in May 2014, Govtor Capital had also teamed up with Taiwan’s CDIB Private Equity to set up a 2 billion yuan ($320 million) private equity fund – Huachuang Yida Private Fund. The Eastern China-focused fund has targeted seven industries such as IT, medical services, chain stores, new energy, and environmental protection.
Technology-focused Addor Capital has recently completed a 5 billion yuan ($715 million) for its sub-funds.
The government of Changzhou launched Changzhou Industrial Investment Fund in August 2018 to accelerate industrial innovation. With a debut size of 5 billion yuan ($715 million), the investment fund has backed emerging enterprises such as Changzhou Qifu Antai Material.