Shanghai-based private equity firm Yunfeng Capital is raising around US$1 billion for its second fund, according to media reports.
The fund was launched last February, with tech, media and telecom (TMT), consumer and healthcare as its main areas of focus.
It reached a first close of US$600 million last year, and is to complete the final close before June.
In January 2011, Yunfeng Capital raised RMB10 billion ($1.52 billion) in two funds. One is a U.S. dollar fund, and the other is RMB-denominated. The two funds focus on investing in the Internet, consumer and new energy firms in China.
In January, Yunfeng and Alibaba agreed to buy a 54.3% stake in pharmaceutical data provider CITIC 21CN for US$171 million. The investment size of Yunfeng in the deal was not disclosed, but it was from Fund II.
Yunfeng Capital was established in 2010 by Jack Ma, founder of Alibaba Group, and David Yu, founder of Target Media. Aside from its Shanghai headquarter, it has offices in Hong Kong, Beijing, Hangzhou in China.
This month, Yunfeng Capital plans to form a real estate financial services joint venture with Sina Corporation, Sequoia Capital China and E-House (China) Holdings Limited.