Ex-GIC investor to raise $525m for China VC

Tuck Lye Koh’s firm Shunwei has launched two vehicles for China’s internet and technology sectors.

Shunwei, a China-focused venture capital firm, has launched two new vehicles targeting a combined total of $525 million, according to two filings with the US Securities and Exchange Commission.

One of the funds, a $315 million vehicle, is the successor vehicle to Shunwei’s $200 million debut launched in 2011. The maiden fund made at least eight investments in China, including in YY.com, Xiaomi, Yek Mobile and BabyBus, according to the firm.

The other fund, named Shunwei China Internet Opportunity Fund, is a $210 million vehicle.

Both funds have been registered with the US SEC, indicating an intention to raise capital from US investors, although neither fund has received LP commitments yet, according to the filings.

Shunwei was founded by its chief executive Tuck Lye Koh, who led the Beijing-based private equity practice at investment firm C.V. Starr and held various positions in the special investments team at sovereign wealth fund Government of Singapore Investment Corporation, now known as GIC Private.

His co-founder and chairman, Jun Lei, is a technology entrepreneur and angel investor in China, having founded mobile internet company Xiaomi and Chinese software business Kingsoft. Lei also founded Joyo.com, which was sold to e-commerce business Amazon in 2004.

Interest in China’s mobile and internet sector has increased over the past couple of years, with internet and technology deals accounting for half of China’s deal volume during 2013, according to a recent China private equity report by Bain & Co.

Last year, 64 deals were closed by private equity firms in China’s TMT sector, double the number in 2012 and accounting for around 30 percent of the year’s total deal value in China. Similarly, 67 deals were completed in China’s internet sector by private equity in 2013.

The internet and media sectors also housed the two largest exits in Greater China in 2013. During the year, DT Capital Partners, iD TechVentures and IDG Ventures sold Fujian Bo Rui Websoft Technology to a trade buyer for $1.8 billion, while Macquarie Infrastructure Management listed Asian Pay Television in a $1.1 billion IPO, the Bain report showed.