[Updated] US pension fund TCDRS commits $70m to China-focused venture funds

Beijing, China. Photo: zhang kaiyv/unsplash

Texas County & District Retirement System (TCDRS) has committed $40 million to two investment vehicles managed by Chinese venture capital firm Source Code Capital and another $30 million to an IDG Breyer Capital fund.

The US pension fund committed $17 million to Source Code Venture Fund V, and another $23 million to Source Code Growth Fund II, according to its investment updates for March 2021.

In April, it allocated $30 million to IDG Breyer Capital Fund, a venture capital fund jointly managed by IDG Capital and Breyer Capital to invest in the China market. The fund announced it raised nearly $2.5 billion in December 2020 without disclosing its targeted corpus. It had earlier received a $35 million commitment from the Delaware Public Employees’ Retirement System.

TCDRS said it allocates 25% of its capital to private equity, which will invest in strategies including buyouts, venture capital, real assets, and non-US buyouts. The pension fund had nearly $34 billion in net plan assets and clocked a 16.57% overall return by end-2019. The return from its private equity allocations in 2019 was 17.3%.

In a filing with the US Securities and Exchange Commission (SEC) earlier this year, Source Code Capital had said it planned to raise $580 million for Source Code Growth Fund II and $420 million for Source Code Venture Fund V.

The Beijing-based firm, which has backed Chinese tech giants such as TikTok-owner ByteDance, announced this week that it has raised $1 billion for these funds. All of the firm’s existing limited partners invested in the new vehicles.

The fundraising has brought Source Code’s assets under management to $2.5 billion and 8.8 billion yuan ($1.3 billion) across multiple dual-currency funds.

The firm had previously raised $570 million in total for predecessor funds, Source Code Venture IV and Source Code Growth Fund I, in April 2019.

The VC has so far invested in over 200 companies, including food delivery giant Meituan; KE Holdings, a SoftBank-backed real estate services provider that went public on NYSE in 2020; electric scooter firm Niu Technologies; e-cigarette company RELX Technology; and electric vehicle (EV) manufacturer Li Auto, which completed a $1.1 billion Nasdaq IPO in 2020.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.