NewMargin Ventures, a China-based investment firm backed by food producer Kerry Group and telecommunications equipment provider Motorola Solutions, has reached the first close of a RMB10bn ($1.48bn) fund.
The fund has so far raised approximately $187m from limited partners including state-owned conglomerate China Everbright and two government-backed funds, NewMargin revealed in a statement on its WeChat account.
Founded in 1999, NewMargin Ventures focuses on high-margin manufacturing and state-owned enterprises, as well as civil-military integration, a national strategy designed to transfer technologies from military and defence research to civilian-focused industries.
The latest fund will target information technology and new materials, investing in companies producing high-end chips, industrial robotics and automation technology.
NewMargin has identified Kerry Group, Motorola Solutions, hotel manager K.Wah Group, mobile device producer Alcatel and Sunevision, the technology arm of property developer Sun Hung Kai Properties, as investors, though it is unclear whether they have backed the latest fund.
Singaporean sovereign wealth fund GIC, Shanghai Alliance Investment, China Foundation of Science & Technology for Development and investment firm Jafco are also among the firm’s backers.
NewMargin’s previous investments include set top box manufacturer Orient View, mobile advertising platform developer MobiExchanger, mobile game producer Patch, supply-chain software provider E-Future and telecoms software producer AsiaInfo.