SHANGHAI, Dec. 28, 2021 /PRNewswire/ -- Eastern Bell Capital today announced the final close of its USD Fund II and RMB Fund VI, with a total size of more than RMB13 billion (US$2.0 billion), marking one of the largest fundraises among China based GPs in 2021.
The latest close takes Eastern Bell Capital's total assets under management, including both its RMB and USD funds, to RMB 27 billion (US$ 4.2 billion). USD Fund II and RMB Fund VI will continue to invest in similar themes as their predecessor funds, namely Industrial Internet and supply chain innovation in China, with two major investment focuses – industrial digitalization and consumption upgrades, covering supply chain, consumer, enterprise services, data, and technology.
USD Fund II's LP base includes global blue-chip sovereign wealth funds, pension funds, insurers, corporates, family offices and fund of funds. It has more than a 95% re-up rate from the LPs in its predecessor fund, Eastern Bell USD Fund I.
Eastern Bell Capital's RMB Fund VI has managed to attract new LPs alongside existing LPs who have invested in the firm for many years, including Oriza which has participated since RMB Fund I. The LPs include government funds, fund of funds, banks, and financial institutions, with a significant increase in the number of insurers and corporate investors.
Since its inception, Eastern Bell Capital has developed a unique investment strategy of starting from a core investment sector focus, becoming a leading GP in that sector, then strategically expanding to related focus areas.
When it was founded in 2010, Eastern Bell Capital first selected logistics as the main investment sector, and subsequently developed into one of the top GPs in China investing in logistics. After years of consistently investing in the logistics sector and building a robust portfolio, the firm began to explore and invest in other sectors.
Since then, Eastern Bell Capital has developed two other major investment focuses – industrial digitalization and consumption upgrades – covering supply chain, consumer, enterprise services, data, and technology.
Investing in supply chain, Eastern Bell Capital focuses on how digitalization has transformed the supply chain systems of various traditional industries in China, from five key perspectives – consumer, retail, distribution, manufacturing, and R&D. The firm has invested in ZKH Industrial Supply, YiHeDa (301029.SZ), Titan Technology (688133.SHA), Jia Li Chuang, Xingyun Group and more.
In the consumer sector, Eastern Bell Capital's thesis is that consumer companies rely on traffic initially, but its ultimate success is determined by supply chain capabilities. The firm invests in four major types of consumer companies – the improvement of supply chain efficiency (infrastructure + supply chain), technology-driven (technology + supply chain), design-driven (design + supply chain) and globalization (going global + supply chain), such as Xingsheng Youxuan, HARMAY, XPeng (XPEV), BananaIn, Usmile and more.
Furthermore, Eastern Bell Capital holds a positive view on the potential of enterprise services, data and technology, and has invested in portfolios the likes of SkyEye, XForcePlus, Going-link, and Asinking.
Eastern Bell has successfully built a strong team with people from diverse backgrounds who share a common vision. The firm advocates the basketball team spirit and mentoring system, which encourages employees to pursue excellence and teamwork, value mentorship, and continue evolving as a team.
With regards to portfolio support, it has been the firm's top priority to optimize its value-added products and services for portfolios. To date, the firm has organized many international study tours, regular closed-door industry salons and brainstorming meetings, and hired both internal talents and external experts with expertise in human resources, financial management, and strategy, to provide support for portfolio companies.
Li Yan, Founding Partner and CEO of Eastern Bell Capital said, "While we believe in proactively pursuing changes and upgrading ourselves, our intentions, values, and core culture remain the same. We hope to work with more partners to create long-term value for the society in the future."
