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.