A second US-China Green Fund equipped with $350m to $400m is expected to launch later this year with the backing of Chinese Academy of Sciences.
Chinese Academy of Sciences (CAS) is anticipated to back the second renminbi-denominated fund of cross-border investment vehicle US-China Green Fund, DealStreetAsia reported on Friday.
The fund is expected to meet its initial $350m to $400m target by the end of 2019, followed by a final close of $700m to $800m at an unspecified date.
US-China Green Fund is pursuing several LPs, including CAS, from its first $550m fund, having already signed up unnamed China-based financial institutions, provincial governments and state-owned entities.
Launched in 2016, US-China Green Fund aims to spur cross-border projects in areas including finance, business models and sustainable technology,
It typically invests about $50m in China-based businesses, however the contribution falls to between $15m and $30m in Western markets. Its current portfolio comprises a sole UK-based business alongside 17 Chinese investments.
There are plans to broaden the geographic mix with a US dollar-denominated fund, potentially limiting the effects of currency volatility and US regulations on Chinese investment.
Investments to date have included AIpark, developers of an artificial intelligence-driven urban parking management platform, and E-huandian, which operates 24-hour vending machines for hiring portable lithium batteries that power electric vehicles.
US-China Green Fund was originally proposed by diplomatic and business leaders who hoped to mature concepts that could reap both financial and environmental benefits.
Among the initiative’s founding members are Henry Paulson, a former US Secretary of the Treasury, and Liu He, serving vice-premier in the Chinese central politburo.
