Eastern Bell seeks $600m for second US dollar fund

The vehicle was launched last August and achieved a first close of $350 million in December, according to a source close to the situation. As of February, $460 million had been raised. The hard cap has been set at $700 million.

LPs include sovereign wealth funds, pension funds, insurance companies, fund-of-funds, family offices, and corporates.

The fund will follow the same strategy as its predecessor, which closed in 2019 at $365 million, backing start-ups focused on logistics and supply chain upgrades. Eastern Bell's renminbi funds - there are five with a sixth currently in the market - also take this approach. Total assets under management are RMB21 billion ($3.2 billion).

The firm was co-founded in 2010 by Zhiming Mei, CEO of GLP China, the country's largest warehouse operator, and Li Yan. Deal targeting has gradually expanded over the years, from logistics providers into the broader supply chain ecosystem, including distribution and trading platforms. Corporate services and software were later added to the investment remit.

Eastern Bell claims to have invested in 170 companies. Of these, 23 have achieved unicorn status, including trucking platform Manbang and Hong Kong-based delivery start-up Lalamove. It invested RMB3.5 billion last year and saw five companies go public, among them electric vehicle maker Xpeng, scientific equipment provider Titan Scientific, and Shanghai Zhonggu Logistics. 

Towards the end of last year, Eastern Bell participated in a RMB3.35 billion funding round for the freight business of China Southern Airlines. The deal was described as mixed-ownership reform, a process whereby private capital and best practices are brought into state-owned enterprises with a view to improving efficiency, but the government does not cede control.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• Technology
• Growth
• Eastern Bell Venture Capital
• Logistics