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Orient Jiafu reaches first close of PE fund at $85m

Orient Jiafu Asset Management

Hangzhou Orient Jiafu Asset Management, an investment management platform launched by Chinese state-owned Zhejiang Orient Financial Holdings Group, announced on Monday that it has reached the first closing of a new private equity fund at over 600 million yuan ($85 million).

The new fund will principally invest in the digital economy field with a focus on companies that develop new-generation information technology and help upgrade traditional industries, said the Hangzhou-based fund in a statement.

It received capital injections from limited partners (LPs) including a 2-billion-yuan ($283 million) fund financed by the local financial department in eastern China’s Zhejiang Province, as well as Chinese state-owned Hangzhou Capital and HZ Cultural Industry Investment.

The parent company, Zhejiang Orient Financial Holdings Group, and other investors also poured money into the vehicle.

Created in May 2016, Orient Jiafu currently has over 10 billion yuan ($1.41 billion) in assets under management (AUM). The Chinese state-backed investment platform has invested in startups like AI chip major Cambricon Technologies, big data solutions provider Boray Data, Beijing-based commercial satellite developer Satelliteherd, and Internet of Things (IoT) chip provider Xinyi Information Technology.

Chen Wanxiang, the founding partner of Orient Jiafu, said in the statement that it took the fund nearly one year to complete the oversubscribed first closing – “a rare accomplishment” in the wake of China’s fundraising winter, market downturn and the impact of the pandemic.

“[The fund] also represents that the digital economy is growing into a new driving force behind the economic development and a new focus that the capital market will continue to track and invest in.”

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