Matrix raises $350m for China

The fund brings Matrix’s total capital under management in China to more than $1bn. 

Matrix Partners has closed its third China-focused fund on $350 million, according to a statement.

The firm makes early-stage and growth capital investments in the technology, media and telecommunications, healthcare and medical technology, consumer services and cleantech sectors. Matrix typically commits between $1 million and $25 million to each business. The closing of Fund III brings the firm’s total assets under management to more than $1 billion in the region.

“The Chinese market continues to present excellent opportunities to build major, highly valued stand-alone businesses,” managing partner Timothy Barrows said in the statement.

Matrix Partners China, whose parent company is growth equity and venture capital investor Matrix Partners, closed its prior fund on $350 million in 2011 and its debut fund on $275 million in 2008, according to Private Equity International’s Research and Analytics division. The Andrew W Mellon Foundation is a limited partner in both of Matrix Partners China’s prior funds.

Last week, Matrix and Warburg Pincus invested $70 million in the C-round financing of recruitment services business, PEI reported. The deal represented the largest investment into a similar company in China in the past five years, according to a statement. In 2011, Matrix invested A-round financing in the Beijing-based business.

“After witnessing the rapid growth of in the past three years, Matrix Partners China is more and more convinced that Liepin’s business model is shaking the current internet-based recruitment sector and has singled itself out as the one to win,” founding managing partner David Zhang said in a statement.

Matrix Partners China’s investment team is led by David Su, Bo Shao and Zhang. The firm is based in Beijing and has an office in Shanghai.

Matrix Partners raises funds for investments in the US and India. Its most recent North American fund, Matrix Partners X, raised $450 million last year and its Matrix India Fund II closed on $300 million in 2011, according to PEI data. The firm’s portfolio companies include subscription-based care services marketplace, members-only online shopping community Gilt Groupe and credit alternative provider ZestFinance, according to its website.

Matrix Partners was established in 1982 by Paul Ferri, who previously co-founded Hellman Ferri Investment Associates with Warren Hellman. Matrix Partners has offices in Cambridge, Massachusetts, Palo Alto and Mumbai.