The Rockley Group has entered into an agreement with Shandong High-Tech Investment Corporation (SDHTIC) and the Shandong Academy of Sciences to raise a $100 million private equity fund focused on Shandong province, China.
The firms will establish an advisory and investment management business to be based in Jinan, Shandong. The Rockley Group and SDHTIC have both committed $10 million each to the fund.
The fund will invest in established technology companies operating in the energy, sustainability, information and communication technology, healthcare and industrial sectors and also in companies in the media and financial services sectors in Shandong. Shandong is China’s second largest provincial economy and has a population of almost 94 million.
“There is continuing strong demand for sustainable, technological solutions to support economic growth in China,” Andrew Rickman, chairman of Rockley Group, said in a statement. He added that through the new initiative, investors will have access to “high quality deal flow from growing, technology companies with products and services to meet that significant demand in China and beyond”.
The fund will help the Shandong Academy of Sciences spin out and develop technology businesses by providing development capital and technological expertise.
SDHTIC is a technology-focused venture fund wholly owned by the Shandong provincial government. Established in 2000, it is focused on investments in the electronics, IT, biologics and engineering sectors and has invested more than $200 million in 30 companies.
The Shandong Academy of Sciences has 12 institutes focused on research and development in marine instrumentation, lasers, automation, materials, renewable energies, bioengineering and agricultural and information technologies. The academy has spun out about 60 companies since its inception in 1979.
The Rockley Group currently manages the Rockley Follow-on Fund, a €100 million ($136 million) fund focused on technology companies in the UK, which was launched in March.