Security Capital, a private equity firm launched by Chinese internet security major Qi An Xin Group, announced on Monday that it has raised 650 million yuan ($94 million) for a new fund to back innovative internet security services and technologies in China.
Limited partners include Qi An Xin Group, a fund of funds (FOF) management platform of Chinese one-stop investment services provider Zero2IPO Group, and Shanghai-based equity asset manager PH Capital, according to Economic Information Daily, an online publication held by Chinese government mouthpiece Xinhua News Agency.
A group of government-linked companies, such as Beijing Financial Street Capital Operation Centre (BFS), ITG Assets, an affiliate of state-owned Xiamen ITG Holding Group, and National Emerging Industry Venture Capital Guidance Fund, which was set up by Beijing in 2015 and closed at nearly 18 billion yuan ($2.61 billion) in May 2017, also poured money into the vehicle.
Security Capital will primarily make investments in the two major fields of new internet security services and technologies in 2020. The company plans to focus on data security, internet of things (IoT) security, security intelligence, and identity management sectors.
The new fund already invested in nearly 10 companies in China, including internet security firm Beijing Integrity Technology, Beijing-based industrial security solutions provider Winicssec, mobile internet firm Blueix Company Limited, Shanghai-based Information & Data Security Solutions (IDSS), security intelligence service provider TianJi Partners, and CyberSky, which delivers cybersecurity management and analysis platforms.
Some of these portfolio companies have plans to apply for an initial public offering (IPO) on the STAR Market, according to the report.
Qi An Xin Group was established in 2014 as a spin-off from 360 Security Technology, a Chinese internet security provider known for its antivirus software, web browser, and mobile application store. The company, led by 360 co-founder Qi Xiangdong, offers enterprise-level internet security technologies, products and services to government institutions, enterprises, as well as educational and financial institutions.
The firm claims that its offerings cover over 90 per cent central government departments, national enterprises, and large-scale commercial banks in China. It has presences in mainland, Hong Kong, Indonesia, Singapore, Canada and other regions, shows the company website.