New | Oriental Patron’s US$435m fund with Magsun aims to nurture Internet giants in China

The fund is aiming to invest in industries such as nursing services for the ageing population, home improvements, education, medical services, e-commerce and finance.

“Some traditional industries might not be viewed as lucrative businesses, but they can be a gold mine in the eyes of internet experts,” said Oriental Patron’s chief executive Gary Zhang Gaobo told the South China Morning Post in an interview . “Excellent companies in the traditional industries can fly high after they are equipped with two wings – finance and internet technologies.”

The fund’s launch bucked the trend of the dismal declines that have beset China’s private equity and venture capitalists last year, when fundraising and investments plunged from a 2015 record.

Concerns about the bursting of the Internet bubble in China have been mounting since last year as a rising number of startups either went bust or faced liquidations owing to unsuccessful operations.

“For the Chinese elites, they could turn some small deals into big businesses by introducing foreign high-end products to the local market,” Zhang said.

Chinese Premier Li Keqiang pledged in the government work report to the National People’s Congress on Sunday that the Internet Plus strategy – using internet technologies to improve manufacturing efficiency and bolster commercial activities – will be deepened to help the mainland economy transform into a sustainable growth pattern driven by entrepreneurship and innovations.