Taiwan-based conglomerate Cathay Financial Holdings’ insurance subsidiary, Cathay Life Insurance, has committed $30m to US-headquartered venture capital firm New Enterprise Associates’ (NEA’s) 18th fund, DealStreetAsia reported yesterday, citing filings on the Taiwan Stock Exchange.
The investment is set to give Cathay Financial a stake of 1.03% in New Enterprise Associates 18, according to DealStreetAsia. NEA has so far secured just under $1.7bn for the vehicle, which has a $2.9bn ceiling.
The deal is just the latest case of an insurer based in Taiwan or China to have backed VC and growth funds. Fubon Life – part of Taiwan-based financial services group Fubon – agreed in October 2021 to commit $65m to investment firm Tiger Global Management’s latest vehicle.
Fubon Life had previously disclosed a $65m commitment to the firm’s Tiger Global Private Investment Partners IV vehicle in February 2021, following a $50m investment in its 12th fund in January 2020. Its sister entity, Fubon Hyundai Life, paid $40m for a 30% stake in the KB AMP Infrastructure fund this week.
Fubon Hyundai Life also backed Blue Run Ventures’ BRV Lotus Fund III, with a $20m commitment in November 2021, representing a 2.4% stake, pushing the vehicle’s overall commitments to $850m.
In September 2021, Cathay Life had itself committed $50m to Summit Partners Growth Equity Fund XI, which is targeting a close of approximately $7bn. The insurer has also committed $30m to private equity firm KKR’s Health Care Strategic Growth Fund II, which closed earlier this month with $4bn in commitments.
Cathay’s interest in venture funds has been ongoing for years. It invested $10m in healthcare-focused investment firm Vivo Capital’s $100m Vivo Panda Fund I in 2016.
In addition to contributing capital as limited partners, regional insurance providers also been actively raising funds themselves and making direct investments.
Ping An Capital, the corporate venturing unit of China-based insurance provider Ping An, closed its second consumer technology fund at $786m in 2019. Ping An reached a $200m first close of its Ping An Voyager Partners vehicle, which is targeting $475m and focusing on investments in financial and healthcare technology as well as related businesses, in May 2021.
Ping An’s Global Voyager Fund, co-led a $30m series E2 round for US-headquartered virtual claims software vendor Snapsheet in March 2021 and a $50m series C-plus round for China-based automation technology developer Laiye the following month.
