Leveraged buyouts, growth capital, angel investments, and seed funding—these private transactions take place, largely out of the public’s eye, not only in Connecticut or Silicon Valley, but also in Beijing, Shenzhen, and Shanghai.
In 2016, China’s private equity (PE) and venture capital (VC) firms raised over $70 billion, more than 20% of total such funding globally. At the same time, these firms also deployed capital to the tune of $223 billion, accounting for more than 70% of global PE/VC investments.
As late comers, these Chinese firms have rapidly grown into formidable financiers. Most Chinese PE firms are particularly interested in products and services that can be commercialized and scaled up quickly in China. They tend to invest in areas that align with China’s shift to a more consumer-driven economy. Meanwhile, Chinese VCs have been active players globally, particularly in Silicon Valley. They have focused on areas such as artificial intelligence, Internet of Things, and electric vehicles.
GF Xinde Investment Management is the private equity and venture capital arm of GF Securities, a major private investment bank in China. The company currently has ¥15 billion assets under management and primarily focuses on healthcare technologies and products.
Guangzhou: (020) 8755.5888, California: (415) 676.3830
In May 2016, GF Xinde and Bay City Capital co-established a life sciences USD fund in New York. The fund aims to facilitate cross-border investments between Chinese and American firms. Bay City Capital is a San Francisco-based venture capital firm specializing in life science investment with $1.3 billion assets under management.