China-based appliance manufacturing group Midea has raised $104m for an investment fund with a targeted close of RMB1bn to RMB2bn ($147m to $293m), China Money Network reported today, citing a regulatory filing.
Guangdong Midea Smart Technology Industrial Investment Fund’s initial raise includes a $44m commitment from an unnamed, wholly-owned investment arm of Midea. The limited partners have not yet been named.
The fund will focus on areas such as intelligent manufacturing, smart home, retail and new energy. It will be managed by an asset management vehicle formed in June 2018.
Midea invested $1.4m in the entity to take a 49% stake, while the remaining 51% is owned by an undisclosed investment management firm which supplied $1.5m.
Founded in 1968, Midea has grown into a conglomerate with more than 200 subsidiaries covering consumer appliances, heating, ventilation and air-conditioning systems, supply chain logistics and robotics and industrial automation.
Midea’s brands include washing machine maker Little Swan and air-conditioning and refrigerator producer Hualing. Its corporate venturing portfolio features US-based SoundHound, the corporate having participated in a $100m round for the voice intelligence technology developer in May 2018.
