Keytone raises $200m

The debut fund from the China-focused private equity firm will invest in the technology, clean-tech, media and consumer sectors.

Beijing-based Keytone Ventures has raised $200 million for the final close of its first fund. The firm will focus on early growth investments in the technology, clean-tech, media and consumer sectors in China.

Of the $200 million raised for Fund I, 35 percent came from endowments, foundations and family offices, 30 percent from funds of funds, 25 percent from pension funds and the remainder from corporate investors, the firm said in a statement.

In terms of geography, North American limited partners contributed 50 percent, European limited partners 40 percent, and 10 percent was raised from Asian investors, the firm said. The fund was placed by MVision Private Equity Advisers, while Gunderson Dettmer Stough Villeneuve Franklin & Hachigian provided legal counsel.

“Despite one of the most challenging market environments in living memory, we have successfully raised our fund,” Joe Zhou, managing partner of Keytone Ventures, said in a statement. He added that the firm has built an “exciting” portfolio and continues to see very good opportunities in the Chinese market.

When Keytone was formed in 2008, it acquired a portfolio of seven investments from Kleiner Perkins

Despite one of the most challenging market environments in living memory, we have successfully raised our fund.

Joe Zhou

Caufield & Byers, Peng Jin, a partner at Keytone, said in an interview. These companies will be a part of the firm's maiden fund's portfolio now. The firm will be comfortable making investments ranging between $5 million and $10 million in size, Peng Jin said, adding that it will not make seed investments.

Just last week, Keytone was among a gorup of investors that backed Beijing-headquartered mobile application software provider Borqs in a $17.4 million Series B funding round.

Keytone has an investment team of eight including managing partner Zhou and partners Stella Jin and Peng Jin, both of whom formerly worked at IDG-Accel China Growth Fund.

Zhou was previously the managing partner of a team hired by Kleiner Perkins Caufield & Byers in 2007 to launch KPCB China and its $360 million China-focused fund. He remains an affiliated partner at the venture firm. From 2001 to 2006, he was a partner at SAIF Partners, a Greater China-focused private equity firm. Prior to that, he was the head of the Beijing office of Softbank China Venture Capital, which he joined in 1999.