After being called “the most entrenched enterprise in a shares” by netizens for spending 47.6 billion on financial management at the end of March, the listed company Foxconn Industrial Internet Co.Ltd(601138) recently announced that it would invest 9.8 billion yuan to set up an industrial investment fund.
According to the announcement information, the fund is called Xingwei (Guangzhou) industrial investment partnership (limited partnership) (hereinafter referred to as Xingwei Fund), with a total fund-raising scale of 9.801 billion yuan, and the fund manager is Beijing Zhilu Asset Management Co., Ltd. (hereinafter referred to as Zhilu capital). The duration of the fund is 8 years, and the investment direction is high-end precision manufacturing industry projects.
In fact, this is not Foxconn Industrial Internet Co.Ltd(601138) the first time to do LP. Last August, Foxconn Industrial Internet Co.Ltd(601138) invested in the southeast digital transformation investment fund and subscribed 50 million yuan; In December, it invested 2.22 billion yuan to participate in the establishment of Shengfeng (Guangzhou) industrial investment partnership (limited partnership) (hereinafter referred to as Shengfeng Fund), becoming the largest LP of the fund It is worth mentioning that the GP of Shengfeng fund is also Zhilu capital, known as the “king of semiconductor M & a”, which attracted much attention in the restructuring of technology giant Ziguang group last year.
Foxconn Industrial Internet Co.Ltd(601138) lavishly throw 10 billion yuan into LP
Recently, Foxconn Industrial Internet Co.Ltd(601138) announced that on March 25, Xingwei (Guangzhou) industrial investment partnership (limited partnership) partnership agreement was signed with Zhilu capital. As a limited partner, the company subscribed 9.8 billion yuan of Xingwei fund, and the source of funds was the company’s own funds.
From the specific content of the partnership agreement, the duration of the fund is 8 years, of which the first to fifth years are the investment period and the sixth to eighth years are the operation exit period. The investment direction is high-end precision manufacturing industry projects.
In fact, this is not Foxconn Industrial Internet Co.Ltd(601138) the first time to do LP.
Last August, the company issued an announcement on participating in the establishment of an investment fund, which will invest 50 million yuan to participate in the establishment of the southeast digital transformation investment fund. According to the announcement, the total scale of this fund is 1 billion yuan. In addition to Foxconn Industrial Internet Co.Ltd(601138) there are several other LPS, namely Fujian electronic information industry venture capital partnership (limited partnership), Putian financial holding, Qingdao UFIDA Industry Investment Management Co., Ltd., Qingdao yuntenghaizhi Investment Co., Ltd. and other investors. The executive partner is digital equity investment (Putian) Co., Ltd.
At the end of 2021, Foxconn Industrial Internet Co.Ltd(601138) issued another announcement, saying that it would jointly initiate the establishment of Shengfeng fund with Zhilu capital, Dongguan Science and technology innovation finance group Co., Ltd. and Zhuhai Development Investment Fund (limited partnership). The total scale of the fund is 3.331 billion yuan, and Foxconn Industrial Internet Co.Ltd(601138) subscribed 2.22 billion yuan of fund shares, becoming the largest LP In the 2021 annual report, Foxconn Industrial Internet Co.Ltd(601138) said that the company expects to make use of the investment experience of professional investment institutions to realize investment income through investment in high-end precision manufacturing industry projects.
In this LP, Foxconn Industrial Internet Co.Ltd(601138) directly invested nearly 10 billion yuan and is the only limited partner of the fund. It can be seen from the degree of attention Foxconn Industrial Internet Co.Ltd(601138) paid to the investment fund from “a small test of the ox’s knife” to “real”.
In fact, not only is it LP, Foxconn Industrial Internet Co.Ltd(601138) but also participates in direct investment as an industrial investor, but the frequency is not high. According to the data of private placement, in April 2020, Foxconn Industrial Internet Co.Ltd(601138) led the investment in the round B financing of lingyunguang, a machine vision manufacturing service provider in the industrial field; In September 2021, Foxconn Industrial Internet Co.Ltd(601138) participated in the round C financing of artificial intelligence Siasun Robot&Automation Co.Ltd(300024) “unicorn” Siling Siasun Robot&Automation Co.Ltd(300024) with an investment amount of US $4.5 million.
Foxconn Industrial Internet Co.Ltd(601138) disclosed the significance of investing in Siling Siasun Robot&Automation Co.Ltd(300024) in the annual report – “it will deepen Foxconn Industrial Internet Co.Ltd(601138) in 3C precision, new energy vehicle industry chain and other fields, and accelerate the construction of industrial moat”, which also reflects the company’s operation idea of layout along the upstream and downstream of the industry.
fund manager is one of the 60 billion “takers” of Ziguang group
Every reporter noticed that as an LP, Foxconn Industrial Internet Co.Ltd(601138) selected the general partner / executive partner of Xingwei fund is Zhilu capital, and this institution is also the GP of Shengfeng fund In other words, this is Foxconn Industrial Internet Co.Ltd(601138) the second time to cooperate with Zhilu capital. What kind of organization is this?
According to the information on the official website, Zhilu capital, established in May 2017, is a global professional equity investment institution, focusing on semiconductor core technology and other emerging high-end technology investment opportunities. At present, there are 38 funds under management registered with China Infrastructure Association Foxconn Industrial Internet Co.Ltd(601138) ‘s announcement revealed that by the end of September 2021, the total assets of Zhilu capital were 440 million yuan, with a cumulative management scale of 51.1 billion yuan.
The managing partner and legal representative of Zhilu capital is Zhang Yuanjie. According to public information, he has more than 25 years of global investment management experience. He once served as the chief investment officer of AXA Rosenberg group in the Asia Pacific region, and later served as the managing director of the asset allocation Department of CIC. He also served as a member of the Investment Review Committee of Beijing Jianguang Asset Management Co., Ltd. and participated in initiating the establishment of Zhilu capital in 2017. According to the record information of China Foundation Association, the actual controller behind this institution is Li Bin.
For industry insiders, what made Zhilu capital famous in the first World War was its acquisition of ANSYS semiconductor in 2017. In that year, the unknown Zhilu capital acquired NXP’s standard parts business (later renamed Anson semiconductor) at a price of nearly 20 billion yuan, which also became China’s largest overseas semiconductor merger and acquisition at that time. At the end of 2021, Chi Lu capital acquired the four largest seal testing company in Chinese mainland.
What made this institution the focus of the whole industry was the reorganization of Ziguang group at the end of last year. At that time, the “Consortium” formed by Zhilu capital and Beijing Jianguang Asset Management Co., Ltd. – Zhilu Jianguang offered 60 billion yuan to take over Ziguang group, which attracted the attention of the whole industry for a time. Recently, market news said that according to the requirements of the legal procedures for the bankruptcy and reorganization of Ziguang group, the investment of 60 billion yuan invested by Zhilu Jianguang consortium to pay off the original huge debt of Ziguang group has been in place, and Zhilu Jianguang consortium will also further participate in the management of Ziguang group and its subordinate enterprises.
For this reason, the recent establishment of Xingwei fund has also attracted extensive attention and discussion from people in the industry. According to the investment style and layout of Zhilu capital, some market participants speculated that the investment focus of this fund will be the semiconductor field.
