First Eastern's Chu launches Nova Scotia fund
Victor Chu, chairman of Hong Kong-based First Eastern Investment Group, is leading a group of private investors that will create a C$50 million ($40 million) venture capital fund in Nova Scotia, Canada.
The fund is intended to help local small and medium-sized enterprises (SMEs) expand into Asia. Chu met Nova Scotia Premier Stephen McNeil during the latter's trip to China in September and plans for the fund were confirmed in London last weekend.
"In addition to the support that this fund will provide to businesses in Nova Scotia, it is also another path for Nova Scotia companies into China. As Nova Scotia reaches to double its exports, and expand tourism, China is a critical current and future market," McNeil said in a statement.
Chu noted that First Eastern has a strong track record helping European SMEs enter Asia. He is looking to replicate this model with companies from Nova Scotia.
An early private equity investor in China during the late 1980s, Chu's initial commitments through First Eastern relied on family money. The firm launched its first fund in 1992 and has raised 10 altogether, starting with evergreen vehicles and then moving to fixed-term GP-LP structures. In the last few years three quarters of the capital First Eastern has deployed has been principal investment.
At the same time, the firm's strategy has become more international, a logical shift given China's increasing focus on outbound investment. However, First Eastern remains focused on middle market businesses.
"We need to look at where we can best add value and one of the natural things was the international market," Chu told AVCJ last year. "We have been investing internationally for a long time and China was looking for technology, branding and management to bring to the domestic market. Companies want to go overseas but you need good partners in foreign markets."
First Eastern has successfully expanded into Southeast Asia, the Middle East and Europe. Chu sees Japan and North America as the geographical holes in the firm's investment map. The Novia Scotia fund represents a step towards filling them.
More on Fundraising
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.