China’s Legend Capital launches sixth RMB fund, looks to raise $1.5b

Commercial buildings including the China Central Television (CCTV) Headquarters, center, stand in the central business district of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

Legend Capital, a Chinese venture capital (VC) and private equity (PE) fund manager, has debuted its sixth RMB-denominated fund in eastern China’s Suzhou City, Jiangsu Province targeting 10 billion yuan ($1.5 billion).

The new fund, whose Chinese name directly translates to “Legend Capital Comprehensive Growth Fund VI,” has already received a capital commitment from the state-owned enterprise Xiangcheng Financial Holdings, which made the investment through its fund of funds (FOF), it announced on February 28, without disclosing the size of the commitment.

In a statement, Xiangcheng said that its FOF series is expected to eventually reach a combined fund size of 10 billion yuan ($1.5 billion).

Launched in late 2017 with a corpus of 3 billion yuan ($464.2 million), the FOF I has by far committed capital to 35 funds that collectively boost a capital size of 30 billion yuan ($4.6 billion). Its FOF II, which was introduced in November 2020 with a fund size of 5 billion yuan ($773.6 million), started making investments this year.

Legend Capital, an independent investment arm of Chinese conglomerate Legend Holdings, launched the new fund for investment opportunities in industries including semiconductors and integrated circuits (ICs), new energy vehicles (NEVs), and consumer electronics.

The launch of the sixth yuan fund follows the final closing of LC Fund VIII, Legend Capital’s eighth US dollar fund, in October 2020. The LC Fund VIII was closed at its hard cap of $500 million with capital commitments from institutional investors in the Middle East, Europe, and Asia.

Beijing-based Legend Capital announced the closing of its previous yuan fund at nearly 10 billion yuan in June 2019. More than 90% of limited partners (LPs) of the predecessor fund were institutional investors, including its parent Legend Holdings, China’s National Social Security Fund, as well as FOFs, insurance companies, and publicly-traded firms with links to the government.

Founded in April 2001, Legend Capital mainly invests in growth-stage technology, media, and telecom (TMT), as well as consumer companies, covering internet, innovative consumption, enterprise IT service, advanced manufacturing, deep technology, and healthcare sectors.

Currently, with over 50 billion yuan ($7.7 billion) in assets under management (AUM), the firm has backed more than 500 companies, over 80 of which have gone public on stock exchanges across mainland China, Hong Kong, South Korea, and the United States.

It is an investor in some of China’s biggest tech firms, such as Contemporary Amperex Technology (CATL), which supplies electric vehicle (EV) batteries to Tesla; medical tech platform WuXi AppTec; Pharmaron, an R&D service provider for the life sciences industry; delivery service SF Express; video site Bilibili; and edtech giant Zuoyebang.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.