The new name “5Y” is a combination of the number 5 in the Chinese name of “Wuyuan Road” (wu means 5 in Chinese) and the first letter of yuan. Wuyuan Road is a one-way street in Shanghai, where the Morningside team has been headquartered from the very beginning.
Morningside was started during the financial crisis of 2008 by Richard Liu, Ken Shi, and Gerald Chan under the auspices of Morningside Group. Before its founding, Liu and Shi worked as investment professionals at Morningside Group, a private investment group founded by the Chan family of Hong Kong.
Morningside Group, which was founded in 1986, makes private equity and venture capital investments. The Chan family controls Hang Lung Properties, one of the biggest and oldest property developers in Hong Kong. The firm was also an early backer of Chinese smartphone Xiaomi.
When Liu, Shi, and Chan spun off the venture capital operation from the family office and set up the Morningside TMT funds, Morningside Group became the anchor investor. Even with the rebranding, Morningside Group remains one of 5Y Capital’s most important investors, the firm added.
“I hope that with our constantly evolving team and investment methodology, we will be able to partner with more and more great entrepreneurs, help them tap into their unique advantages and achieve greatness,” said co-founder Richard Liu.
5Y Capital currently manages $3 billion in dual-currency funds (USD and RMB) and has provided multi-stage investments to a wide range of businesses, including Joyy (Nasdaq-listed), Xiaomi Corporation, Kuaishou, Kingsoft Office, Agora, Xpeng Motors, and Pony.ai.
Last month, the firm led the $318.8-million Series C funding in XtalPi, a biotech firm that uses artificial intelligence and computing to accelerate the development of new pharmaceutical drugs.