Advantech, Redview target $1.5b for China deals
Advantech Capital and Redview Capital – parallel entities formed following the restructuring of Chinese GP New Horizon Capital – are seeking a combined $1.5 billion for their latest funds.
Each vehicle is targeting $750 million and most LPs are required to make equal minimum commitments of $20 million. It is the same approach used for the first Advantech and Redview iterations, which closed in 2016 on $560 million apiece, including the GP commitment. Investors have been told of plans for a first close of $1 billion – across the two follow-up funds – comprising contributions from existing LPs.
New Horizon was set up in 2005 by Winston Wen, son of former Chinese Premier Wen Jiabao, and Jianming Yu. Wen's day-to-day involvement ended in 2012. New Horizon raised three China funds with more than $2 billion in capital, but plans for Fund IV were put on hold amid reports of internal disputes. Following the split, Yu became the leader of Advantech and Redview.
Advantech focuses on growth capital investments in technology, media and telecom (TMT) and healthcare. Its most significant portfolio company is Chinese drug developer Zai Lab, which raised $150 million through a NASDAQ IPO last September. It currently has a market capitalization of $1.1 billion. Advantech led a $100 million Series B round for the company in 2016.
Healthcare is a prominent theme in the Advantech portfolio through the likes of KBP Biosciences and Sinovac Biotech, although the latter deal – a US take-private involving several other investors – has yet to close. TMT deals include commitments to two artificial intelligence specialists, Sense Time and Petuum, which are based in China and the US, respectively.
Redview concentrates on more traditional businesses, particularly in the advanced manufacturing, clean energy, new materials, and consumer sectors. Investees include communications technology company Source Photonics, which was acquired in conjunction with Asia-IO Advisors, and OLED equipment maker Kateeva. Both companies are US-based but their businesses are relevant to China.
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