Despite US-China tensions. the fund has a diverse LP base from with about half the funding from Greater China, sitting alongside backers from Southeast Asia, Europe, the Middle East and the US.
China’s TH Capital, an investment advisory and asset management firm, has closed its debut US dollar fund on target at $100m.
The fundraising of TH Capital, which originated from China’s Tsinghua University, the “MIT of China”, ran between the start of 2023 and the end of 2024 with half of the total capital being raised from Greater China.
“Despite a challenging market and the evolving US-China relations, we’ve successfully built a diverse LP base from Greater China, Southeast Asia, Europe, the Middle East and the US,” Rafael Ratzel, managing partner at TH Capital International, shared in a LinkedIn post.
Emphasising the company’s belief in the deeptech sector’s future and private market investment in China, Ratzel added: “With 15 years and 5 RMB funds strong track-record of generating liquidity through a leading technology portfolio, we are ready to lead the way into a new technology age with this fund.”
The US dollar fund targets early and growth-stage investments in deeptech companies, with investments between $5m and $15m.
Half of the equity has been deployed in seven companies including AI startup Spirit AI, hydrogen fuel systems provider Aoyan, energy storage specialist Zhongchu Guoneng Technology, electric vertical take-off company Aerofugia and chip developer Lanxin Computing.
TH Capital is currently tracking early-stage opportunities in traditional AI applications and embodied AI integrated into physical systems.
In light of the tense US-China relations, the company has embedded political and risk analysis into its investment decision process, monitoring the potential impact of tariffs and export restrictions.
The company currently manages funds over CNY 10bn ($1.3bn).
