Ocean Link has raised $580 million for its second fund as the Shanghai-based private equity firm continues its focus on China’s tourism and consumer technology sectors, Asia Venture Capital Journal (AVCJ) reported on Wednesday.
The firm expects co-investments alongside the new fund could take its aggregate capital deployment size to $1.4 billion, according to the report. Ocean Link did not immediately respond to DealStreetAsia’s email request for comment.
Ocean Link, an investor in Chinese classifieds marketplace 58.com Inc and online travel agency Tongcheng-Elong, primarily invests in China’s consumer, travel, as well as technology, media, and telecom sectors.
The firm is among a rising number of PE investors seeking to back take-private offers of US-listed Chinese companies, as interest in a relisting closer to home grows amid tensions between Beijing and Washington.
In January, Ocean Link joined hands with Sequoia Capital China in an offer to privatise Hong Kong-listed Zhejiang New Century Hotel Management, a hotel management services provider in China, for a total of HK$1.51 billion. It was also part of an investor group consisted of Warburg Pincus, General Atlantic, and 58.com’s chairman & CEO Yao Jinbo that agreed to take the Beijing-based firm private in a deal that valued it at $8.7 billion last year.
Ocean Link was founded in early 2016 with capital commitments from online travel giant Trip.com and US growth equity firm General Atlantic. Led by founding partners Tony Jiang and Alex Zheng, the firm has a board of directors including Trip.com’s chairman & co-founder James Liang, as well as Eric Zhang, managing director and head of General Atlantic’s business in China.
Its website shows that Ocean Link currently manages two U.S. dollar funds and one RMB-denominated fund with teams operating from Shanghai, Beijing, and Hong Kong. Limited partners (LPs) of its funds include financial institutions, sovereign wealth funds, family offices, and corporates in China and globally.
Ocean Link has built a portfolio of companies including Kaiyuan Hotels, a Chinese operator of four- and five-star hotels, travel site Mafengwo, grocery app Dingdong Maicai, cross-border payment settlement service PingPong, Trip.com-backed hotel group LvYue, and rental apartment operator Mofang.