China’s GSR Capital raises $1b LED-focused fund
China-based GSR Capital - an affiliate of Go Scale Capital, which saw its bid for Philips' Lumileds business thwarted by regulators - has closed a new $1 billion fund to invest in LED companies globally.
The vehicle - GSR Go Global Fund - was oversubscribed, according to a statement. It received commitments from a group of anchor investors, including leading Chinese high-tech companies, Taiwan industrial groups and unnamed entrepreneurs.
The fund will specifically target acquisition opportunities within the LED lighting value chain in China and overseas. As a result of the shift from conventional lighting to LED technology, manufacturing has consolidated. GSR Capital has seen several global assets, including those owned by Philips and Osram Lighting, put up for sale and it wants to capitalize on this trend.
"We firmly believe there is a great opportunity to build the next leading LED lighting enterprise in China that will dramatically improve products and services, increase operational efficiency and significantly reduce overall cost," said Sonny Wu, founder and managing director of GSR Capital.
GSR Capital is affiliated to early-stage venture firm GSR Ventures as well as Go Scale, and Wu holds senior positions in each group.
GSR Capital and Go Scale launched a cross-border buyout and M&A fund last year that targets international companies across clean energy, bio-pharmaceuticals and life sciences, bulk commodity investment, wireless communication and other industries. It will either buy companies outright or acquire minority stakes. Wu told AVCJ that two deals will be announced shortly.
Prior to the formation of M&A fund, Go Scale attempted to buy an 81.1% stake in Lumileds, Philips' LED components and automotive lighting unit. However, the deal was terminated due to regulatory concerns raised by the Committee on Foreign Investment in the United States (CFIUS). Wu said at that time the firm would continue to pursue deals in the industry, from LED technology to electric vehicles.
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