China's MSA receives VC fund commitment from Al Waha
China-based MSA Capital, also known as MagicStone Alternative Investments, has confirmed that Middle Eastern investor Al Waha has made an LP commitment to its second venture capital fund.
The size of the investment has not been disclosed. The fund reached a first close of $200 million in March. It is targeting $250 million and has a hard cap of $300 million. The first close included contributions from 13 LPs, although it is not clear if these included Al Waha.
Al Waha is a Bahrain-based fund-of-funds focused on bridging markets in the East and West, which is considered an essential development for scaling Middle Eastern businesses and transforming the Gulf region into a driver of innovation. The firm is active in VC, having previously backed funds managed by the likes of BECO Capital and Middle East Venture Partners, both based in Dubai, as well as 500 Startups, and Amsterdam-based Finch Capital.
"We believe the Gulf is at an inflection point due to an influx of seasoned talent, capital, and technology adoption," Ben Harburg, a managing partner at MSA, said in a release. "Chinese pioneered mobile-focused business models, both for enterprise and consumers, are best positioned to provide a roadmap for entrepreneurs in the region."
MSA launched its first fund in 2009, a RMB 1 billion ($141 million) vehicle that combined a fund-of-funds strategy, focused on emerging GPs, with a separate pool for direct and co-investments. The fund-of-funds component has been removed for the new vehicle, which will pursue a China-focused direct investment strategy in areas including artificial intelligence, genomics, mobility, and software-as-a-service.
Previous investments include bike-sharing company Mobike, which was acquired last year at a reported valuation of $2.7 billion by Meituan-Dianping, another MSA portfolio company. Other portfolio standouts include short-term rental site Xiaozhu and electric car maker Nio, the latter of which raised $1 billion in a US IPO last year. Earlier this year, MSA made a rare non-China investment in Egyptian ride-hailing app Swvl.
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