China Everbright, Walden launch semiconductor fund

The vehicle, Walden CEL Global Fund I, is expected to reach a first close of $200-$250 million by the end of November, said a spokesperson at China Everbright. It will invest in the global semiconductor industry supply chain - including companies specializing in microchips and artificial intelligence - with a view to bringing high-end technology to China.

The fund will leverage China Everbright's cross-border investment and capital markets capabilities as well as Walden's technology investment and fund management experience.

The global semiconductor industry generated $338.9 billion in revenue last year, of which China accounted for $150 million, according to Semiconductor Industry Association data cited by China Everbright. It sees considerable upside in demand for products using semiconductors, driven by the development of cloud computing, the internet-of-things, and 5G networks.

Semiconductor assets, especially in the US, have attracted considerable interest from Chinese investors in recent years. However, not every deal in the space has been successful, largely due to regulatory concerns. For example, Canyon Bridge Capital Partners – a private equity firm backed by Chinese LPs - was recently blocked from buying US-based Lattice Semiconductor. The GP subsequently acquired UK-headquartered chipmaker Imagination Technologies.

Walden CEL Global Fund I will target growth and later-stage deals, but most of its investments will be for minority stakes, the spokesperson said. 

This is not China Everbright's first co-GP partnership fund. Last year, it teamed up with IDG Capital to form a joint fund that looks at M&A and restructuring opportunities across financial technology, entertainment, mobile e-commerce, as well as LEDs and semiconductors.

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• Topics
• Greater China
• Fundraising
• Technology
• Growth
• China
• China Everbright
• TMT
• Growth capital
• Walden International
• manufacturing