Joint venture with China Everbright to launch fund

IP Group plc forms joint venture with China Everbright Ltd to

launch a £167m* (RMB1.5bn) fund in China

IP Group plc (LSE:IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, is delighted to announce a joint venture with China Everbright Limited (HKG:0165) in Hong Kong to launch a fund in China aimed at providing growth capital to China-based subsidiaries of IP Group's UK portfolio companies.

The fund, which can only invest in entities incorporated in the PRC such as the China subsidiaries of overseas companies or joint venture structures, is expected to achieve a first close of RMB500m (c.£56 million*) later this year and increase to RMB1.5bn (c. £167 million*) within the next three years.

Aimed at supporting high-growth companies wanting to establish a presence in China, the fund will deploy no less than 40% of the capital to IP Group plc portfolio companies with the balance available to non-IP Group deep technology companies. 

Alan Aubrey, Chief Executive of IP Group plc, said: "We are delighted to partner with one of the most renowned asset management firms in Greater China to support the growth of our portfolio companies in the region. This joint venture is consistent with our stated strategy of working with high-quality partners to provide our companies with access to expertise, network and capital."

Dr Wei Zhao, Chairman of China Everbright, said: "China Everbright has always been committed to the cultivation of high-growth technology businesses with its unique cross-border approach. We look forward to working with IP Group plc to enable world-class science and technology to make contributions to humanity."

The fund will be managed from the IP Group side by Dr Lewis Zhenyu Liu, Managing Director of IP Group Greater China and Managing Partner of IPG-CEL China Ventures, and Joyce Dan Xie, Managing Director of IP Group Greater China and Partner of IPG-CEL China Ventures. China Everbright is IP Group's exclusive partner in the RMB fund management business in China.

Dr Lewis Zhenyu Liu, Managing Director of IP Group Greater China and Managing Partner of IPG-CEL China Ventures, said: "The joint venture is dedicated to providing both financial and strategic support to deep technology businesses with unparalleled growth opportunities in one of the world's most dynamic economies."

* GBP equivalents calculated using 9 CNY/GBP.

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Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

For more information, please visit our website at www.ipgroupplc.com.

About China Everbright Limited

China Everbright Limited was established in Hong Kong in 1997 and is China's leading cross-border investment and asset management company. Its parent company is China Everbright Group. Everbright manages private equity funds, venture capital funds, industry funds, mezzanine funds, parent funds, fixed income and equity funds. Everbright utilises its strong private capital and cultivates a number of high-growth-potential enterprises together with its investors.

ENDS