<article>Shanghai-based <a href="https://www.dealstreetasia.com/tag/newmargin-ventures/">NewMargin Ventures</a> has reached a first close of 1.25 billion yuan ($186 million) for its targeted 10-billion-yuan ($1.5-billion) civil-military integration fund.</article>

Shanghai-based <a href="https://www.dealstreetasia.com/tag/newmargin-ventures/">NewMargin Ventures</a> has reached a first close of 1.25 billion yuan ($186 million) for its targeted 10-billion-yuan ($1.5-billion) civil-military integration fund.
The fund has received commitments from guidance funds operated by the Shenzhen municipal government and Nanshan district, as well as <a href="https://www.dealstreetasia.com/tag/china-everbright/">China Everbright</a>, among other private investors, NewMargin Ventures said in a statement last week.
The new vehicle is a market-oriented equity investment fund focusing on military-civilian integration, high-end manufacturing and mixed reform of state-owned enterprises.
Most of the current civil-military integration operations are carried out by state-owned funds, and the market lacks a market-oriented fund, the venture capital firm said.
China&#8217;s push for greater military-civilian integration means that its private companies are required to contribute towards military modernisation as the country seeks to upgrade its arms and equipment.
&#8220;The military industry is less affected by the economic cycle. The price-to-earnings ratio of the industry in the secondary market has surpassed other industries,” said Han Yuze, founding partner of NewMargin Ventures.
“We have been preparing for this fund for more than two years. We are very optimistic that we will be able to complete the fundraise despite a very difficult market environment,&#8221; he added.
NewMargin Ventures has branches and offices in Beijing, Hangzhou, Shenzhen, Xinjiang and Hong Kong. It currently manages more than 35 billion yuan of assets through 77 investments. The company says on its website that more than 50 companies in its portfolio have been listed.

The fund has received commitments from guidance funds operated by the Shenzhen municipal government and Nanshan district, as well as China Everbright.

China's NewMargin Ventures holds first close of $1.5b RMB fund

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China's NewMargin Ventures holds first close of $1.5b RMB fund

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