NIO Capital Said Raising $500M Offshore Fund For Auto Investment

NIO Capital, a private equity fund established by Chinese electric car company NIO, is close to completing the first round of a US$500 million offshore fund that will invest in new automotive technologies, according to media reports.

NIO Capital did not immediately respond to China Money Network’s email seeking for comment.

The company is in talks with sovereign wealth funds, energy and insurance companies in Asia and Europe as potential investors for the dollar-denominated fund. The new fund will also consider investing in offshore units of some Chinese companies, according to the report.

NIO Capital focuses on investing in mature electric vehicle and alternative energy firms, and related early stage tech startups. It partnered with Sequoia Capital China and Hillhouse Capital for its first NIO New Energy Development Fund.

In April, NIO Capital and Chinese Internet-of-Things (IoT) firm G7 and logistics firm GLP formed a technology joint venture developing smart trucks.

Its portfolios include Shouqi Limousine & Chauffeur, a Chinese ride-booking app backed by Beijing-based automobile company Shouqi Group, and Momenta, a Beijing-based autonomous driving tech start-up.