Good Resources commits $93m to finance Go Scale’s Lumileds deal

In April, a Chinese consortium led by Go Scale Capital announced it would buy an 80.1% stake in Lumileds in a deal worth $3.3 billion.

A filing revealed that Good Resources has invested in a vehicle called GSC Special Buyout Fund, which is pursuing cross-border investment opportunities, including the acquisition of Lumields. Sonny Wu, co-founder of GSR Ventures and chairman of GSR Capital and Go Scale, manages the fund. He is also a director of Good Resources, holding more than 15% of the company.

To complete the Lumileds deal, the investors will contribute $1.38 billion in equity between them and supplement that with $1.93 billion in loans provided by Bank of China. Apart from Good Resources, backers include government-controlled Nanchang Industrial Group and a number of unnamed LPs from GSR funds.

Last month, Go Scale raised $1 billion for its cross-border buyout fund - GSR Global M&A fund - which it hopes will translate into $5 billion worth of dry power once debt financing and co-investment are factored in. Cheng is an investor in the fund and Good Resources will offer support on all M&A deals, as well as co-investing in certain transactions.

Cheng has previously collaborated with GSR and Go Scale on other investments, including Lattice Power and Boston-Power.

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• Topics
• Greater China
• Buyouts
• Cleantech
• China
• LPs
• buyout
• Cleantech
• GSR Ventures