Hillhouse establishes China VC unit

GL Ventures will operate independently of its parent, according to a statement. The unit currently has more than 20 staff, all drawn from Hillhouse's original venture capital investment team, according to Caixin. Equity ticket sizes will be RMB3-30 million.

Coverage is split into four areas: biopharmaceuticals and medical equipment, enterprise software and services, consumer internet, and emerging consumer brands. GL Ventures will have access to the Hillhouse network and resource ecosystem to support initiatives such as cross-border expansion. Software start-ups will also be able to seek customers among its parent's portfolio companies.

Hillhouse raised $10.6 billion for its most recent private equity fund, which closed in 2018. The firm has a reputation for flexibility in its investments, backing companies ranging from start-ups to established listed players. However, more recently it has also shown an appetite for sizeable buyout transactions that require operating capabilities as well as an understanding of technology.

Transactions in last few months include the purchase of a 15% interest in Gree Electric Appliances, China's leading manufacturer of air conditioners. It also joined a $50 million Series B round for Hetao 101, an online education platform dedicated to computer programming for children.

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• Topics
• Greater China
• Venture
• Technology
• Renminbi fund
• Fundraising
• China
• Hillhouse Capital Management
• TMT