Secondary investor backs Hidden Hill's $465m fundraise
Hidden Hill Capital, which is backed by warehouse operator turned logistics and infrastructure investment manager GLP, has closed its debut growth-stage US dollar-denominated fund on USD 465m with secondaries specialist NewQuest Capital Partners among the lead investors.
NewQuest anchored the first close through a structure that offers exposure to assets in an existing US dollar fund managed by Hidden Hill, according to a source close to the situation. It is a deferred payment deal: two-thirds of the capital is committed upfront, with the remaining one-third to be financed using distributions from the portfolio.
The NewQuest contribution to the fund – which also featured several of the firm’s LPs as co-investors – comprised solely secondary capital, the source added. Hidden Hill completed subsequent closes with commitments from LPs across North America, Asia, and Europe. According to a statement, the entire fundraising process took six months, and the vehicle was oversubscribed.
The new fund will invest in the modern logistics and supply chain ecosystem across China and Asia, focusing on businesses that use technology to improve efficiency and reduce cost, energy, and carbon impact. Hidden Hill leverages GLP’s own knowledge and ecosystem, in some cases rolling out solutions developed by portfolio companies in GLP warehouses and having clients try them out.
GLP divides its ecosystem into three layers: infrastructure; finance, energy, and materials; and business solutions. Hidden Hill occupies the top two, targeting logistics services, digital supply chains, and technology enablement in areas like robotics, renewables, and the internet of things (IoT).
The growth equity investment unit was established in 2018 and now has more than USD 3.6bn in assets under management (AUM) across five renminbi funds and two US dollar funds. It started out with a cross-stage stage fund of CNY 8bn (USD 1.1bn) and introduced separate private equity and venture capital vehicles in later vintages.
Hidden Hill is targeting USD 5bn in AUM by 2025 and the US dollar funds – led by the latest offering, Hidden Hill Foundation Fund – are intended to help expand geographic coverage across Asia.
The firm’s previous investments include China Southern Airline Logistics, JD Logistics, J&T Express, as well as technology-driven companies like G7, Inceptio, ForU, Libiao Robotics, Jet Commerce, and Telexistence.
G7, an IoT fleet management platform that provides shipment tracking and related financial services, was one of the earliest deals. Hidden Hill subsequently teamed up with Nio Capital, an investment firm established by the founder of electric vehicle (EV) manufacturer Nio to incubate Inceptio, a developer of autonomous driving technology for trucks that spun out from G7.
Hidden Hill leveraged its relationships in the original equipment manufacturer (OEM) space to hook up Inceptio with two of China’s three largest truck makers and helped bring CATL, JD Logistics, and Meituan into a Series B round last year. Participation by strategic players served as an endorsement of Inceptio’s technology and laid the ground for further investment from independent VCs.
The adoption of renewable energy in logistics and supply chains is a key theme, accessed through EVs and related battery storage and recycling technologies. Hidden Hill has backed the likes of Farizon Auto, a new energy vehicle (NEV) brand under Chinese OEM Geely, lithium-ion battery manufacturer WeLion, battery recycling specialist Ruicycle, and EV charging network operator YKC.
“The successful fundraise which closed above the fundraising target in a matter of six months is a strong vote of confidence from our investors who are looking to invest in transformative and innovative companies in logistics, supply chain and related technology”, said Higashi Michihiro, a manging partner at the firm.
“At Hidden Hill, we are able to identify early trends in these sectors which are digitisation, automation and adoption of renewable energy and can add value to our portfolio companies by integrating them in Hidden Hill’s broader ecosystem and support their growth and international expansion plans.”
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