Alibaba Commits $100M To Yunfeng Capital Fund


Chinese e-commerce giant Alibaba Group Holding Ltd. has committed US$100 million to Yunfeng Capital‘s second U.S. dollar fund as a limited partner, according to a securities filing submitted by Alibaba.

It wasn’t sure when the commitment was made. Yunfeng’s second U.S. dollar fund is currently on the road to raise US$1 billion. The fund was launched last February, and reached a first close of US$600 million last year.

The fund will invest in tech, media and telecom (TMT), consumer and healthcare sectors in China.

The commitment is disclosed in Alibaba’s IPO filings to the U.S. Securities and Exchange Commission on May 6. The document also disclosed that Jack Ma owns a 40% interest in several entities that are the general partners of investment funds sponsored by Yunfeng Capital.

Alibaba has co-invested with Yunfeng for a number of deals lately. In April, the two acquired 54% in Chinese pharmaceutical data firm CITIC 21CN for around US$170 million. In this deal, Yunfeng purchased approximately 16% of CITIC 21CN for HK$395 million (US$51 million).

In March, the pair planned to take 18.5% Of Chinese video sharing site Youku Tudou for US$1.22 billion. Yunfeng Capital was to invest US$132 million for a 2.0% stake.

According to Alibaba’s F-1 filings, the firm is planning to raise US$1 billion in the U.S. But analysts say the debut could be much larger.

The filing also says that Alibaba expects that Yunfeng will assist itself in relevant strategic investment opportunities in the future.

As previously announced, Jack Ma will donate all returns he may receive from Yunfeng to Alibaba’s charitable organization, the Alibaba Foundation.

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.

Yunfeng Capital was established in 2010 by Jack Ma and David Yu, founder of Target Media. Aside from its Shanghai headquarter, it has offices in Hong Kong, Beijing, Hangzhou in China.

Co-founders of Yunfeng Capital include around 20 well-known Chinese entrepreneurs, including chairman of Giant Interactive Shi Yuzhu , and CEO of Focus Media, Jiang Nanchun.

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