China’s Future Capital closes debut growth fund

LPs primarily include endowments and family offices in Europe and the US, according to a person close the situation. Fundraising took four months and was completed in February.

The fund was launched immediately after Future Capital closed its fourth US dollar vehicle at $187 million. That vehicle was said to be 60% oversubscribed.

The growth fund will target Series B-plus to Series D-stage companies with an average ticket size of $20 million. It will re-up in existing portfolios so as to serve enterprises in the entire life cycle. Recent activity in this vein includes participation in a RMB1 billion ($155 million) Series D for reimbursement platform Ekuaibao led by SoftBank Vision Fund 2.

“We first invested in Ekuaibao in 2015 in the pre-Series A round when it had yet to launch a product, and then we re-upped in the following rounds. Now that we have our growth fund, we can write larger equity checks,” Mingming Huang, Future Capital's founding partner said in an earlier interview.

Cloud-based infrastructure, logistics technology, mobility solutions and internet-of-things are key themes for Future Capital. Huang believes in opportunities in transitions to the cloud, notably opensource software – including underlying and middleware products – for cloud-based infrastructure.

“There will be a huge change. Many businesses are built on cloud-native architecture today,” Huang said. “Traditional databases and infrastructure software can no longer support the flexibility and high-speed expansion requirements of cloud-based enterprises.”

Future Capital manages five US dollar funds and one renminbi fund, with approximately $600 million in total assets under management, according to AVCJ's estimates. It claimed an 8-10x multiple and a gross IRR of 45-55% across all its funds last year.

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• Topics
• Fundraising
• GPs
• Technology
• Greater China
• Venture
• China
• Future Capital