China’s SAIC Capital closes $145m auto industry fund
SAIC Capital, an investment manager controlled by Chinese automaker SAIC Motor, has raised a RMB1 billion ($145 million) fund that will target deals throughout the automotive industry supply chain.
The capital will be deployed by Shangqi Capital, a dedicated private equity affiliate of SAIC Capital. It will focus on new energy vehicles, energy conversation and environmental protection technologies, microchips, high-end manufacturing, and automotive aftermarket services.
Past investments by Shangqi cover the full spectrum of industry participants. The portfolio includes chauffeured car services provider Ucar, semiconductor manufacturer Amlogic, lithium-ion battery specialist Hunan Changyuan Lithium, and traffic management business TrafficData, automotive diagnostic equipment maker Autel, and smart car big data platform specialist Rainbow Wireless.
LP contributions came from within the parent company’s network – SAIC Capital, SAIC-backed Shanghai Diesel Engine, and key SAIC supplier Baolong Group are among the investors – as well as from government guidance funds Shanghai Science & Technology Venture Capital Group, and Bank of Communications International Trust.
SAIC Capital serves as an investment management platform for SAIC Motor and as an asset manager for third-party capital. While Shangqi Capital focuses on private equity, SAIC Venture Capital incubates start-ups and makes early-stage investments, and SAIC Motor Asset Management concentrates on public equities. There are also fund-of-funds and strategic investment units.
Shangqi Capital was established in 2012 and has more than RMB8 billion in assets. It has invested in more than 60 companies, of which 10 have gone public. SAIC Capital said in a statement that the key automotive industry trends – electrification and smart networking – would benefit from the new financing options for tech businesses presented by the recently launched Star Market in Shanghai.
Asia has seen a raft of specialist fundraising activity by technology and automotive corporates in the past couple of years. Nissan Motor, Mitsubishi Motors, and Renault teamed up to launch Alliance Ventures, a $1 billion fund that has a strong presence in the region with offices in China and Japan. Similar initiatives have been established by Cathay Capital Private Equity and French auto supplier Valeo as well as Baidu and Singapore’s Asia Mobility Industries.
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