Everbright-IDG Industrial Fund

Introduction

Everbright-IDG Industrial Fund (“the Fund”) is one of the leading funds of its kind in the China market. Our ultimate mission is to create the country’s largest, most influential industrial fund by helping foster industry-wide advances and sharing in significant profits with investors. We are also well placed to seize historic investment opportunities afforded by the current developments in China’s M&A industry through a razor-sharp focus on making value investments.

The Fund is a joint initiative of the cross-border asset management platform of China Everbright Limited (“CEL”), a leading enterprise with state-owned background, and IDG Capital Partners (“IDG Capital”), a quality management company for international equity investments. By bringing the strengths and best investment teams of both firms to the table, CEL and IDG Capital are able to build an attractive fund with high potential. The Fund has total committed capital of not less than RMB20 billion.

The Fund’s focus is on first-tier industry projects, cross-border M&As, top companies, sector leaders, and enterprises with the potential to become sector leaders. CEL and IDG Capital connect them with the Chinese capital market; develop strategies for investment, financing, M&A, industry consolidation and management incentives; and provide value-added services across the value chain, including post-investment management and divestment.

CEL and IDG Capital have established an experienced investment team to manage this enormous Industrial fund. Featuring talent from top global investment firms and financial institutions, as well as highly esteemed Chinese and multinational companies. The team has considerable expertise in investment and asset management. It also has solid understanding of financial markets, M&As, corporate management and industries, and wide-ranging experience in hands-on operations. By focusing on long-term strategic investment and capitalising on industry trends, the Fund promises to generate substantial investment returns.

Investment Strategy

The Fund is firmly committed to value investment. We are not just a financial investor; rather, we see the importance of being involved with our investees across the value chain. By actively leveraging capital and our extensive management experience, we can judge the direction the industry is heading and offer our investees a platform of broad market prospects and unprecedented opportunities for rapid growth.

Given China’s economic transformation and changing consumption patterns, we have set our sights on the many dynamic IPO, M&A, restructuring and spin-off opportunities that are arising in emerging sectors. The Fund’s key portfolio covers Fintech, leisure and entertainment, high technology and new consumption.

Focusing on Industry Leaders, Connecting with Capital Markets

Traditional industries in China are undergoing profound change because of the internet and shifting consumer bases, resulting in a wave of M&As and consolidation. The Fund is therefore focusing its unrivalled resources on first-tier, sector-leading projects, both in China and overseas, that have clear competitive edges, exceptional, mature business models, stable profits and high potential. The projects that the Fund focuses on demonstrate a remarkable leading advantages, high profitability and high growth. These rare gems in China’s capital market typically command a price premium. For sector-leading listed companies, our team works with them at the intra-group level to help achieve corporate IPO or management buyouts. The Fund pursues M&A and industry consolidation opportunities in and outside of China, providing enterprises in the invested sectors as well as upstream and downstream enterprises with access to capital markets, in the light of building listed companies at the industry platform level.

Identifying Winners with High Growth Potential

We seek exceptional, fast-growing companies with the potential to become sector leaders. As strategic investors, we help these companies rapidly connect with capital markets. Also, by actively exporting management expertise, and by relying on the Fund’s highly experienced team and strong backing, we help our investees exploit upstream and downstream resources across the value chain, and provide them with operational experience in the mature capital market. Our goal is to help these companies realise their potential and become bona fide industry champions.

Investment Advantages

Strong Management Teams that Complement Each Other

The Fund combines the robust resources of CEL and IDG Capital. CEL has capitalised on China Everbright Group’s full license advantage and market influence for more than 20 years to garner substantial investment experience. With an international management platform and dozens of established funds, CEL and overseas investors have identified and developed many Chinese enterprises with high growth potential. The company aims to be the best cross-border asset management platform in China.

IDG Capital was the first international professional investment company to enter the Chinese market. It boasts considerable resources and investment experience in areas such as TMT and hi-tech manufacturing. It has also invested in companies that have played important roles in the development of the internet, such as Baidu, Tencent, Sohu and Xiaomi.

The collaboration between CEL and IDG Capital combines and maximises both companies’ rich experience and sizeable resources in investment and capital operations, within and outside China. The joining of these two powerful market players has also created the largest and most influential industrial fund in China, one that shares with investors the historic opportunities offered by the transformation and enhancement of the Chinese economy and the stable growth of the capital market.

A Fully Committed Star Investment Team

The Fund’s elite investment team, which includes members from both CEL and IDG Capital, is fully committed to day-to-day investment policies and project management. It has achieved stellar investment results in areas like the internet and hi-tech manufacturing, as well as in Chinese and overseas capital market operations. Team members also have extensive networks and resources across the industry.

The Fund’s Investment Committee comprises seven renowned financial professionals from China, including Mr Chen Shuang, Executive Director and Chief Executive Officer of CEL; Mr James Pan, Member of the Management Decision Committee of CEL and Chief Investment Officer of CEL; Mr Hugo Shong, Global Chairman of IDG Capital.

Outstanding Post-investment Management Capabilities

The Fund’s investment team has managed more than 30 equity investment funds in total. Over more than 10 years of investing, they have nurtured the growth of many flagship companies across various sectors and provided stable investment returns to investors in a complex economic environment.

CEL is a fully licensed cross-border capital management platform with a proven track record in investment management. The company currently manages HK$290 billion in funds. IDG Capital was the first international professional investment company to enter the Chinese market, and it has considerable resources and investment experience in areas such as TMT and hi-tech manufacturing. Both companies have accumulated a wealth of resources after many years of involvement in TMT and related industries. The Fund’s excellent investment record also includes capital injection and restructuring. The opportunities we offer up and down the value chain, along with our excellent post-investment management, promises substantial synergistic benefits for the Fund and its investors.

Wish

As the world’s largest unlisted provider of full mobile cross-border e-commerce capabilities, Wish primarily targets young people and medium- and low-income groups in developed countries across Europe and the US. Wish has already become one of the most popular mobile shopping apps in Europe and the US. It has evolved into a gigantic B2C platform in terms of both trading volume and operating scale by featuring a combination of “mobile terminal + intelligent recommendation + cross-border e-commerce” and focusing on the shopping characteristics of differentiated consumer groups.

China UnionPay Merchant Services Co., Ltd.

China UMS is an iconic name with great brand value, as it has consistently taken the largest market share in the payments and acquiring sector. China UMS has many years of experience in the acquiring and payment sector, its bankcard acquiring service covers 337 cities above the prefecture level. By building on a strong network of merchant resources and a well-established payment and clearing system, China UMS has built a massive and reliable database for merchant operations that lays a solid foundation for subsequent development of financial services.

iQIYI

The Chinese video industry has witnessed phenomenal growth in the past few years. Fueled by the continued popularity of mobile Internet and a new wave of consumption upgrades in China, the demand for diversified and high-quality video content has continued to rise. As the leading video entertainment brand in China, iQIYI has focused on creating content IP supported by technology innovations to develop a considerable amount of high-quality original content in recent years, leading to explosive growth of Internet-enabled entertainment, including online variety shows, online dramas and online movies. In addition, it leads China’s VIP paid membership services.

NextEV

NextEV was established by Li Bin, founder and CEO of Yiche.com and former CEO of Dangdang.com, and Li Xiang, founder of Autohome.com.cn, riding on the development of internet technology in 2014. The Company is engaged in the research, development, manufacturing, sale and after-sale service of mid- to high-end smart electric vehicles.

Beijing Zhongguancun Kejin Technology Co., Ltd.

Established in June 2015, the company holds shares of Mashang Xiaofei Financial Company, which focuses on online consumer finance loans and is one of the 20 consumer finance companies and one of the 5 non-banking consumer finance companies certificated by China Securities Regulatory Commission. Another company that Beijing Zhongguancun Kejin Technology Co., Ltd. indirectly holds shares of is Shenzhen Qianhai Xueqiu Financial Service Co., Ltd. (“Xueqiu”), an off-line loan affiliate service provider, whose major business partner at current stage is Mashang Xiaofei Financial Company.

Everbright Investment Team

  • Victor Ai

    Managing Director

    As the head of Everbright New Economy Fund, Mr. Victor Ai is the founder and managerial partner of New Economy USD Funds, Everbright-IDG Industrial Fund, and GUANGKONG ZHONGYING CAPITAL, heading over 70 RMB and USD projects with AUM over RMB 30 billion. 

    Victor is an expert at investment and leadership in the new economic realm. For over 10 years, he exhibited great performance in the investment and management of projects inclusive of iQIYI, MEITUAN-DIANPING, NIO, Sensetime, TERMINUS, 4Paradigm, Netease Cloud Music, MISSFRESH, Wish, Mashang Consumer Finance, China UMS, Circle, i.am+, yixia.com, as well as transactions like MLS’s merger of OSRAM Lighting and HC SemiTek Purchase of Memsic. 

    Before joining Everbright';s new economy platform, Victor was the core founder of Everbright EBA Investment, China’s largest real estate fund. With services for J.P. Morgan’s HK and NY investment banking divisions, Victor holds a Bachelor’s degree in economy from Simon Fraser University in Canada and master’s degree in finance from Washington University. He was rewarded PEDaily Fancy 40 young investors in China in 2018, 2018 Outstanding Young PE Investors by HuaXing Capital, 2017 Top 50 PE investors by China Venture, 2017 Top 10 Best Investor in Entertainment Industries, 36 Kr’s 36 Outstanding Investors under 36, CYZONE Top 40 Investors under 40, ChinaVenture Hurun Midas List 2016, and Top 10 Best Young Investors in China 2016-2018 by Investors.com.

  • 金正

    Gerry Jin

    Managing Director, Head of New Economy Private Equity China Everbright Limited

    Mr. Jin is currently a managing director at China Everbright Limited and head of their new economy fund management team that focuses on investment into high technology work in China. Mr. Jin has over ten years’ experience in PE investment and invested in and managed deals worth well over RMB 30 Billion. He is recognized as a leading player in investment in industries of technology, media and entertainment. His signature deals include iQiyi (NASDAQ: IQ), China UnionPay, Mashang Finance and Netease Cloud Music and well as the acquisition by Hc Semitek (300323.SZ) of Memsic, and the acquisition by Crystaland Technology, MLS (002745.SZ) of Osram.

    Before joining China Everbright Limited, Mr. Jin was a leading executive with PKU Resources (618.HK) having served as their board secretory, vice president and general manager. Before PKU, he was named the strategic investment director of Founder Group. At Founder, his had completed a series signature M&A and strategic investment deals. Mr. Jin started his career in CITIC PE.

    He holds an MBA degree from University of Pittsburgh and Bachelor degree from University of International Business and Economics in Beijing.

IDG Capital Investment Team

  • Hugo Shong

    Co-Chairman, IDG Capital

    In 1993, Mr. Shong co-founded China’s first technology venture capital firm, IDG Capital, backed by Patrick J. McGovern, Founder and Chairman of International Data Group (IDG). 

    Mr. Shong completed the Harvard Business School’s Advanced Management Program in the fall of 1996. He conducted graduate studies at the Fletcher School of Law and Diplomacy 1987-88 and earned his MS degree from Boston University’s College of Communication in 1987. He studied Journalism at the Graduate School of the Chinese Academy of Social Sciences from 1984 to 1986 and he received a B.A. degree from Hunan University in 1982.

    Mr. Shong has been a member of the Board of Trustees at Boston University since 2005, and the non-executive director of WPP plc since 2013.

  • Quan Zhou

    Co-Founding Partner, IDG Capital

    Zhou Quan joined IDG Capital in 1993 andhas been the Managing Director since 1995 . Quan attained Bachelor Degree in Science from University of Science and Technology of China in 1981. He also holds Master Degree from the Chinese Academy of Science and a Ph.D. in Fiber Optics from Rutgers University. He is a winner of NASA awards and patent holder for fiber optic devices in the US.

  • Bingjun Huangfu

    Partner, IDG Capital

    Bingjun Huangfu has played key roles in many real estate companies, including Chairman of Yongjia International Investment, Vice President of Beijing Taiyue Group, Managing Director of Zhenguan International Investment, GM of Guofeng Real Estate, Chairman of Jinhuan Real Estate Company and Vice President of Guorui Investment. He has operated and invested many landmark real estate projects with over 2 million square meters. BingjunHuangfu holds Master Degree in Industry Economics in Chinese Academy of Social Sciences.

  • Jingbo Wang

    Partner, IDG Capital

    Jingbo Wang focuses on Private Equity and M&A investments. Prior to joining IDG Capital, he worked for the North America growth capital and buyout team at D. E. Shaw and Co.. He has actively participated in many large investment deals in energy and insurance sectors. He has also worked for ExxonMobil's Corporate Strategic Research as a senior researcher. Jingbo holds his Bachelor Degree in Mechanical Engineering from Tsinghua University and PhD from Cornell University.

  • Ping Zhai

    Partner, IDG Capital

    Prior to joining IDG Capital in 2011, Ms. Zhai Ping worked at Financial Street Holdings Co., Ltd., where she was responsible for the group’s foreign investment and innovative financing business. She was also involved in management oversight for a number of regional companies. Her previous work experience includes directing the investment and financing operations of real estate projects valued at over RMB10 billion, and leading the valuation of land assets associated with the restructuring and listing of several large state-owned enterprises in China. She graduated from Cornell University with MBA degree and holds a Bachelor of engineering from the College of Architecture and Civil Engineering at the Beijing University of Technology. 

Everbright-IDG Industrial Fund

Tel (86 10) 8800 9000
Fax (86 10) 8800 9377
Email info@everbright.com
Postcode 100034
Address Room 1600, Level 16, China Overseas International Centre, No. 28 Ping An Li West Street, Xi Cheng District, Beijing, China