TPG, SoftBank Ventures Korea team up for $300m China fund

The vehicle, which will concentrate on early-stage opportunities, is to be managed by members of TPG’s growth investment team in China. It reflects the growing appetite among private equity firms for technology exposure.

“This is an important step for TPG to expand its presence in China and also an opportunity for us to further tap the fast-growing early-stage Chinese technology companies,” says Chang Sun, the firm’s managing partner for China. TPG’s previous investments in the space have tended to be in larger businesses, such as bike-sharing start-up Mobike and online used car sales platform Uxin Group.

For SoftBank Ventures Korea, the tie-up represents an opportunity to grow in China. While there are PE and VC groups in the country that claim SoftBank heritage – including SAIF Partners and SBCVC – the Korea unit claims to be the technology conglomerate’s only global early-stage venture arm.

Founded in 2000, SoftBank Ventures Korea invests in start-ups with growth potential in Asia, the US, Israel, and the EU. It primarily concentrates on artificial intelligence, the internet-of-things, and smart robotics. The firm has 14 funds with $960 million in assets under management.

TPG is currently raising its latest flagship pan-Asian buyout fund, which has a target of $4.5 billion.

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• Topics
• North Asia
• Greater China
• Fundraising
• Venture
• Technology
• China
• TMT
• Softbank
• South Korea
• TPG Capital