Shenzhen Capital Group Co., Ltd. has teamed up with the Suzhou government and other entities to launch a big data-focused government guidance fund with a total fundraising target of RMB5 billion (US$732 million).
Suzhou Hongtu Big Data Venture Capital Fund, which also counts Zhangjiagang Jinmao Investment Development, Chinese property firm San Sheng Hong Ye and a planned new economic development area Suzhou Gaotie New Town, will first raise RMB500 million (US$73 million) and be managed by Shenzhen Capital Group.
The fund will focus on investing in big data trading platforms, software-as-a-service (SaaS) projects, chips, sensors and digital technologies via equity investments to help consolidate the big data industry value chain in the Yangtze River Delta region.
The vehicle will also partner with industry funds and other financial institutions to incubate and support innovative concepts in the big data field.
Founded in 1999, Shenzhen Capital Group is a major player in China's government guidance fund scene, having co-founded and managed around 80 such state-backed vehicles with around RMB23.3 billion (US$3.4 billion) in aggregate funds raised. The firm also manages Shenzhen government's guidance fund-of-funds vehicle and other government funds.
The firm manages RMB205.5 billion (US$30.5 billion) in total across government funds, private market funds and joint venture investment entities.