IP Group has set up a joint venture with China Everbright that will invest in Chinese subsidiaries of the commercialisation firm’s portfolio through a $235m-target fund.
IP Group, the UK-based commercialisation firm, unveiled a joint venture called IPG-CEL China Ventures with asset manager China Everbright today that will raise a fund sized up to RMB1.5bn ($235m).
The fund is expected to achieve a first close of $77m this year, before growing to its target size within the next three years.
The fund will exclusively invest in joint ventures and subsidiaries of overseas companies incorporated in China. It will deploy no less than 40% of its capital to IP Group portfolio companies looking to establish a presence in the People’s Republic.
The remainder will be invested in other deep tech companies.
The fund will be managed by Lewis Zhenyu Liu, managing director of IP Group Greater China and managing partner of IPG-CEL China Ventures, and Joyce Dan Xie, managing director of IP Group Greater China and partner of IPG-CEL China Ventures.
Alan Aubrey, chief executive of IP Group, said: “We are delighted to partner with one of the most renowned asset management firms in Greater China to support the growth of our portfolio companies in the region.
“This joint venture is consistent with our stated strategy of working with high-quality partners to provide our companies with access to expertise, network and capital.”
Liu said: “The joint venture is dedicated to providing both financial and strategic support to deep technology businesses with unparalleled growth opportunities in one of the world’s most dynamic economies.”
IP Group already operates subsidiaries in the US and in Australia.
