Fosun launches VC arm in Silicon Valley
Chinese conglomerate Fosun International has launched a venture capital arm operated in Silicon Valley. The firm, Kinzon Capital, has received $100 million from Fosun to invest in US-based start-ups.
Guo Guangchang, Fosun's chairman, said the VC arm will target investments in smart phones and mobile internet companies that are looking to expand in China, The Wall Street Journal reported. Specific areas include mobile games, chat, payments, healthcare, as well as companies involved in cloud computing.
The US operation is led by Managing Director Brad Bao, a former executive at Tencent Holdings.
Kinzon is part of a wider effort to transform Fosun into a global investment firm, with venture capital and technology investments being core to the portfolio.
The Silicon Valley VC arm comes after a string of overseas purchase by Fosun. Its typical approach is acquiring international assets with an angle to expand in China.
It has reportedly bidded for the sale of magazine publisher Forbes Media. In January, it acquired an 80% stake in Caixa Seguros e Saúde, the insurance unit of Portugese state bank Caixa Seguros e Saúde for EUR1 billion ($1.36 billion), beating out Apollo Management International.
In September it agreed to buy a 35% stake in Italian menswear brand Caruso. It also acquired a stake in French-based vacation resorts operator Club Méditerranée (Club Med) through a joint venture with Ardian, formerly Axa Private Equity.
Meanwhile, Fosun is participating in the privatization of NASDAQ-listed Chinese healthcare provider Chindex International. The deal is worth $461 million, after the consortium - TPG Capital and Fosun Industrial - raising its offer to head off competition from a rival financial bidder.
Founded in 1992, Fosun operates in four lines of business, including insurance, industrial operations and pharmaceuticals, and investment and assets management.
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