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.
GP Capital was jointly founded by SIG Asset Management, Jiangsu Shagang Group, Hua Tai Securities, and Heng Dian Group. The firm focuses on investment opportunities in financial services, healthcare, new energy, and agriculture.
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In August 2016, GP Capital, along with Sensata Technologies, Delphi Automotive, Samsung Ventures, and Motus Ventures, provided $90 million in Series B funding to Quanergy Systems. Based in Sunnyvale, CA, Quanergy is the leading provider of solid state LiDAR sensors and smart sensing solutions.
In May 2016, GP Capital, along with BOE, Cybernaut Venture, Redview Capital, and TCL Capital (all from China) provided $88 million in Series E funding to Kateeva. Based in Newark CA, Kateeva aims to reduce the cost of manufacturing flexible and large-scale OLED screens.