China Life, Baidu launch $1b tech PE fund
China Life Insurance Group and internet search giant Baidu have agreed to form a RMB7 billion ($1 billion) private equity fund to invest in technology companies.
According to a filing, China Life will contribute up to RMB5.6 billion to the vehicle – Baidu Fund Partnership – with Baidu itself committing RMB1.4 billion. China Life, through its wholly-owned subsidiaries, will manage the fund and indirectly hold a 40% stake in the management company. Baidu will own the remaining 60%. The fund will have an investment period of six years.
Baidu Fund Partnership will make middle to later stage investments in Chinese internet companies or overseas-based businesses with a meaningful China angle. Focus areas include mobile internet, artificial intelligence, internet finance, consumption upgrade and the “internet plus” concept.
State-owned China Life, the country's largest insurer, had total assets of RMB2.88 trillion as of June. It has an active private equity program, having made LP commitments to third-party funds as well as a number of direct investments in privately held companies.
Baidu, which has a market capitalization of nearly $80 billion, previously launched several tech funds. These include Baidu Capital, a $3 billion tech fund that was established last October and targets mid- and late-stage deals, and a $200 million VC fund that focuses on next generation technologies such as augmented reality and virtual reality.
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