China is in the process of equipping itself with a powerful new investment vehicle. Indeed, the public conglomerate China Merchants Group has announced that it wants to raise 15 billion dollars, or 13 billion euros, in order to invest in technology companies in the country and around the world.
To launch this fund called the China New Era Technology Fund, the conglomerate joined forces with Beijing-based fund manager SPF Group and London-based investment firm Centricus.
A response to SoftBank’s Vision Fund
The choice of Centricus is not trivial. Its co-founder, Dalinc Ariburnu, advised the Japanese SoftBank during the creation of its investment fund. However, the China New Era Technology Fund is also a response to the powerful Vision Fund endowed with 100 billion dollars.
The fund will be matched up to 40% by China Merchants Capital Investment Management, the conglomerate’s dedicated investment arm, and other investors based in China. For their part, Centricus and SPF Group will create a joint venture, Centricus SPF, under which international investors will be united.