IFC considers commitment to China's GenBridge

According to a filing, GenBridge Capital Fund I has an overall target of $400-500 million. AVCJ reported last December that Singapore's GIC Private is the anchor LP, with JD.com also committing a sizeable amount. Other early investors are said to include several family offices.

GenBridge's founders and partners are Bin Chang, Hugh Li and Xinzhao Zhang. Chang and Zhang were both previously members of JD.com's investment and strategy department. Before that, they worked at Capital Today Group and China International Capital Corporation, respectively. Li used to be an investment professional at TPG.

"Whatever uncertainty you think there is, one thing cannot be more certain: China has the largest and fastest-growing middle class in the world, which is expected to grow from 250 million to 500 million people over the next five years. These people are looking to consume better products and services," Li told the AVCJ USA Forum in July. "You just have to make sure you are investing in the right segments of the economy."    

He explained that GenBridge seeks to differentiate itself in two ways: by leveraging relationships with Chinese technology companies such as JD.com and Tencent Holdings to generate deals that would not ordinarily be available, and through post-investment value-add. Li also emphasized the importance of adaptability, given "the emergence of a new generation of brands and services and it requires a different set of capabilities to identify, evaluate and empower those brands."

GenBridge isn't the only GP to be established by executives spinning out from one of China's internet giants. Richard Peng, head of M&A at Tencent Holdings, left the company in 2015 and launched Genesis Capital, while several former Baidu employees created Xianghe Capital. Ongoing ties to these companies vary in terms of formality, from loose agreements to collaborate on deal-sourcing to direct economic interests.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• Growth
• Consumer
• GenBridge Capital
• China