Richard Dong, founding and managing partner of Hidden Hill Capital
Hidden Hill Capital, a private equity investment firm backed by GLP Capital Partners, announced on Friday that its debut Hidden Hill RMB VC Fund I has reached a final close on RMB 1.1 billion ($156.1 million) in fresh cash.
The fund focuses on early-stage tech startups in the supply chain sector, including alternative energy, smart hardware, corporate services, digital solutions, artificial intelligence and the Internet of Things.
The launch of Hidden Hill’s first RMB venture capital fund comes less than nine months after the investment firm announced the final close of its second RMB private equity fund, Hidden Hill PE RMB Fund II, at about RMB 8 billion.
“As an industry investor, Hidden Hill Capital not only provides financial support to companies based on forward-looking industry insights and all-round post-investment empowerment, but also helps them stand out in the fierce market competition with rich application scenarios and multiparty resources, jointly promotes breakthroughs and innovations in cutting-edge technologies in the industry, and promotes cost reduction, efficiency improvement and resilience in the logistics and supply chain industries,” Richard Dong, founding and managing partner of Hidden Hill Capital, said.
Strategy and Execution
With a focus on harnessing data to improve logistics efficiency, the venture capital fund has invested in more than 10 startups so far, including Terminexus, a port equipment and digital solutions provider affiliated with Chinese state-owned engineering company Shanghai Zhenhua Heavy Industries.
Higashi Michihiro, founding and managing partner of Hidden Hill Capital
It also backs Suzhou-based energy storage startup ZSUN and Zhiyu Weike, which offers customised vehicle design and IoT solutions for bulk commodity transportation.
Hidden Hill RMB VC Fund I received backing from, a range of institutional investors, including national-level funds, Chinese state-owned investment platforms and private sector funds of funds, according to the company statement.
Higashi Michihiro, founding and managing partner of Hidden Hill Capital, said the closing for the RMB venture capital fund demonstrates the investment institution’s strengths in market insight, investment strategy and execution capabilities.
Hidden Hill was established in 2018 and focuses on modern logistics services, digital supply chain, new energy and logistics supply chain technology in China and Asia. Across its RMB and US dollar funds the company now has assets under management (AUM) in excess of RMB 28 billion.
In total, Hidden Hill has invested $2.4 billion in about 90 companies, according to its website, including Chinese state-owned marine transportation group COSCO Shipping and China Southern Airlines Cargo Logistics.
Capital Crush
Hidden Hill’s parent, GLP Capital Partners, has been on a fundraising streak in the past year, having set up a series of investment vehicles for industrial and commercial assets.
With $45 billion in assets under management in China as of 2022, GLP’s investment division has increasingly turned to domestic capital sources for its mainland business after the company lost its last investment grade offshore credit rating in November. In August last year, GLP was reported to be making available for sale $7 billion of its China logistics assets.
In February, GLP set up a fund targeting industrial parks in China with an initial investment capacity of more than $350 million, aiming to focus on properties catering to advanced research manufacturing.
That vehicle was announced after GLP in January, announced that, working with a leading global institutional investor, it had brought its China Income Fund XII to a final close with RMB 10 billion of assets under management.
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