Chinese conglomerate Fosun’s VC arm closes third RMB fund at $317m

Fosun RZ Capital, the venture capital arm of Chinese conglomerate Fosun International, has closed its third RMB-denominated fund at 2 billion yuan ($316.7 million), per its announcement on Thursday.

With this, its total assets under management (AUM) have reached nearly 10 billion yuan ($1.6 billion).

Fosun RZ Capital joined hands with state-backed China SME Development Fund to launch the vehicle, Science and Technology Venture III RMB Fund.

Shanghai’s Venture Capital Guiding Fund, as well as several Chinese state-owned and private-sector fund-of-funds, came in as new limited partners (LPs) of the fund, in addition to existing LPs.

The fund will leverage Fosun’s industrial ecosystem to invest in and support the development of small and medium-sized enterprises (SMEs) in China. It targets investment opportunities in early- and growth-stage startups in the tech and new consumer goods sectors with a focus on semiconductor, self-driving, Software-as-a-Service (SaaS), new energy, robotics, cybersecurity, and cross-border businesses.

Set up in 2013, Fosun RZ Capital forayed into the Southeast Asian and US markets in 2014, followed by its entry into India in 2016 and then Israel in 2019.

Dual-headquartered in Beijing and Shanghai, the firm currently has offices in Shenzhen, China; Delhi and Bengaluru, India; California, the US; and Tel Aviv, Israel.

To further expand its global footprint, Fosun RZ Capital said in a statement that it is preparing to raise a new US dollar fund while growing its presence across new markets. The firm seeks to gradually expand into Singapore, as well as emerging markets in Southeast Asia. It is also exploring new business opportunities throughout Europe.

Fosun RZ Capital will use its global experience to “identify quality assets worldwide for investment” and to “connect Chinese and overseas industrial resources to deliver outstanding returns to investors,” it said.

“Fosun RZ Capital will empower Chinese portfolio companies from a global perspective and help them expand overseas.”

In China, Fosun RZ Capital has built a portfolio of companies such as self-driving start-up DeepRoute.ai, automotive aftermarket service CassTime, fitness studios operator Supermonkey, Tencent-backed online medical services provider WeDoctor, and meal replacement brand ffit8.