Hidden Hill Capital, the alternative asset management arm of global logistics giant GLP, has closed a new RMB-denominated venture capital (VC) fund at 1.1 billion yuan ($156 million), the firm’s first early-stage vehicle to focus on modern logistics and digital supply-chain technologies.
The VC fund will primarily invest in early-stage tech startups in the logistics supply-chain space, including new energy, smart hardware, corporate services, digital solutions, artificial intelligence (AI), and Internet of Things (IoT), GLP announced on Friday.
The parent firm said that the new fund attracted commitments from institutional investors like China’s state-owned investment platforms, national-level funds, industry capital, and private-sector funds-of-funds (FOFs).
With a focus on “data-powered logistics efficiency improvement,” the fund has invested in over 10 startups so far, including Terminexus, a port equipment and digital solution provider affiliated with Chinese state-owned engineering company Shanghai Zhenhua Heavy Industries (ZPMC).
It also backs Suzhou-based energy storage startup TSUN and Zhiyu Weike, which offers customised vehicle design and IoT solutions to bulk commodity transportation.
Founded in 2018, Hidden Hill does minority, significant minority, and strategic equity investments in companies across modern logistics services, digital supply chain, renewable energy-related technologies, and cross-border opportunities in Asia. Its total assets under management (AUM) across both RMB and USD strategies have crossed $4 billion.
The launch of Hidden Hill’s debut RMB VC fund came less than nine months after the firm announced in January the final close of its second RMB private equity (PE) fund, Hidden Hill PE RMB Fund II, at about 8 billion yuan ($1.1 billion).
The second RMB PE fund follows the investment approach of its predecessor, the 2018-vintage, 10-billion-yuan ($1.4 billion) Hidden Hill Modern Logistics Private Equity Fund, to back growth-stage companies with a focus on modern logistics services, digital supply chain, renewable energy, and related technologies.
In addition to its flagship RMB funds, Hidden Hill also announced in October 2021 the first close of its RMB-denominated Hidden Hill Carbon Neutral Fund at 200 million yuan ($28.4 million), with a target to raise a total of 1 billion yuan ($141.8 million). Launched in a partnership with Chinese renewable energy SaaS provider YKC Clean Energy Technologies, the fund was built to invest in smart electric vehicle (EV) charging infrastructure in China.
It also runs the 5-billion-yuan ($701.8 million) Hidden Hill Yueyang Fund, which is a separately managed RMB vehicle that Hidden Hill introduced in December 2020 alongside Chinese local government-backed investment firms. The fund is tasked to support the logistics industry development in Yueyang City in southern China’s mountainous Hunan Province.
For its USD strategy, Hidden Hill closed an oversubscribed USD fund — Hidden Hill Foundation Fund — at $465 million in December 2022. A group of LPs from North America, Asia, and Europe committed to the fund, including Asia-focused secondary PE company NewQuest Capital Partners as the lead LP.
In total, Hidden Hill has invested $2.4 billion in about 90 companies, according to GLP’s official website.
Its portfolio companies include COSCO Shipping, a Chinese state-owned marine transportation group; air cargo business China Southern Airlines Cargo Logistics; and Indonesian courier services startup J&T Global Express.
The firm also backed Sany Heavy Truck, a truck manufacturer affiliated with China’s Sany Heavy Industry; Farizon Auto, a commercial new energy vehicle (NEV) brand owned by Chinese multinational automaker Geely; and Inceptio Technology, which develops autonomous trucks.
It is also an investor in a fleet management group formed through a merger between Tencent-backed firm G7 Connect and Alibaba Group-backed E6 Technology.
