Eastern Bell closes first US dollar fund at $365m
China’s Eastern Bell Capital has closed its first US dollar-denominated fund at $365 million, exceeding the target of $350 million.
The fund will follow the same strategy as the venture capital firm's renminbi funds - backing Chinese start-ups focused on logistics and supply chain upgrades. Eastern Bell closed its fifth renminbi vehicle at RMB4.7 billion ($670 million) in June last year. The firm claims total assets under management of more than $1.9 billion.
LPs in the US dollar fund include sovereign wealth funds, insurance companies, fund-of-funds, family offices, and corporates. Subsequent to its first close in late 2018, the fund had invested in six companies, including social e-commerce platform Xingsheng Youxuan, fresh produce retailer Yipin Shengxian, automotive parts supplier Mancando, and software-as-a-service provider XForcePlus.
"In the early days, we invested in US dollar projects with our renminbi fund, so we had to go through the scheme of outward direct investment. Now, with our US dollar fund, we can walk with two legs. Our US dollar fund can invest in US dollar-denominated deals – mainly VIE [variable interest entity] structured companies – while our renminbi fund can continue to invest in onshore structured companies," Lisa Lei, COO of Eastern Bell, told AVCJ.
The Shanghai-based firm was co-founded in 2010 by Zhiming Mei, previously CEO of GLP China, the country's largest warehouse operator, and Li Yan. Its first investment, Deppon Logistics, is said to have generated a healthy return. In 2012, deal targeting expanded into the broader supply chain ecosystem.
Eastern Bell divides supply chain investments into three themes: end-consumer, enterprise services, and data technology. The latter includes the use of artificial intelligence and big data to bring efficiency to logistics and supply chains.
"Supply chains can cut into any sector. From fresh produce targeting end-consumers to auto parts makers supplying car repair shops, any successful business model is based on efficient supply chain management. We invest in leading companies in different industries that have strong supply chain fundamentals," said Lei.
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