China-focused venture capital firm Lightspeed China Partners (LCP) has closed a new fund at $1.5 billion to further expand investment scope to cover growth-stage companies in consumer internet, high-tech and corporate service industries.
The new vehicle, dubbed “Lightspeed Opportunity Fund,” will primarily invest in LCP’s existing portfolio firms, while looking at investment opportunities in growth and late-stage enterprises who are leading players in various segments. The fund will write cheques between $50 million and $100 million.
The Opportunity Fund added to LCP’s previous five U.S. dollar funds and one RMB-denominated fund, bringing its total assets under management (AUM) to $2 billion, said LCP in an email reply on Thursday.
The development comes more than one year after LCP announced in January 2019 that it has collected $360 million for its early stage-focused “Lightspeed China Partners IV,” and $200 million for the debut growth-stage vehicle, “Lightspeed China Partners Select I.”
The company said that the capital commitments in the previous two funds have exceeded $600 million, which enhanced its capabilities in making investments beyond early-stage startups in the fields of consumer internet, corporate service, high-tech, and other internet-enabled sectors.
The company has generated returns from a series of portfolio’s initial public offerings (IPOs) in recent two years, including Beijing-based food delivery giant Meituan Dianping, which raised $4.2 billion in a Hong Kong IPO in September 2018, and online group discounter Pingduoduo and its $1.63 billion US float, Nasdaq-listed online-to-offline (O2O) real estate platform Fangdd Network Group, as well as New York-listed Chinese fintech firm FinVolution Group and financial products recommendation platform Jianpu Technology.
LCP also backs a group of growth-stage portfolio companies in China, such as Uber-like truck logistics unicorn Manbang Group, electric vehicle brand Xiaopeng Motors, 3D-sensors (LiDAR) developer Hesai Technology, enterprise-level cloud computing firm QingCloud, and Tencent Trusted Doctors, an online healthcare unicorn backed by tech giant Tencent.
Lightspeed Venture Partners, LCP’s Silicon Valley-based sister firm, also closed another two new investment platforms “Lightspeed Venture Partners XIII” and “Lightspeed Venture Partners Select IV” at $890 million and $1.83 billion, respectively.
Since its inception in 2000, Lightspeed has backed more than 350 companies, managing over $6 billion of committed capital across the US, Israel, India and China.