China-based retail group Suning agreed today to provide up to $210m for a fund being raised by China-based private equity firm Yunfeng Capital with a $2.5bn target, according to a regulatory filing.
Suning will provide the money through a wholly-owned subsidiary known as Suning International, and has already committed more than 61.4% of the capital. The fund, Yunfeng Investment III, will seek additional limited partners as it looks to reach its target.
Founded in 1990, Suning is the biggest retail store operator in China. It specialises in consumer electronics and household appliances as well as office equipment, and operates both brick-and-mortar stores and an e-commerce platform.
Suning previously partnered Yunfeng, which was co-founded by e-commerce firm Alibaba’s founder, Jack Ma, for a separate vehicle called Yunfeng IK Co-Invest in January 2019, committing $50m to that fund.
Last month, Suning joined forces with securities firm Guoati Junan Securities’ private equity division, Guojun Capital, to launch a $1.5bn fund of funds targeting advanced equipment manufacturing, IT, healthcare and renewable energy.
The company’s corporate venturing portfolio includes electric car developer Byton, which is in the process of raising $500m in its series C round, and e-commerce platform Linlinyi, which secured $30m in series A funding from Suning and others in January 2019.
