Tech war: venture giant GGV Capital spins off China operations after US congressional investigation
- The split, expected to be completed by early 2024, will turn GGV into two independent partnerships based respectively in the US and Singapore
- GGV was one of four US investment firms that received an inquiry letter from a congressional committee in July
Venture firm GGV Capital said on Thursday that it would separate its American and Asian operations, joining several other US firms that have made similar moves as Washington looks to restrict investments in sensitive Chinese technologies.
The split, expected to be completed by the first quarter of next year, would turn GGV into two “completely independent” partnerships with distinct branding, the company said in a statement.
The US partnership, based in Silicon Valley, will be headed by managing partners Glenn Solomon and Hans Tung, among others. The Asian business, headquartered in Singapore with a focus on China, Southeast Asia and South Asia, will be led by managing partners Jenny Lee and Jixun Foo.
GGV’s yuan-denominated funds will continue to be managed independently under the Jiyuan Capital brand, led by managing partner Eric Xu.
GGV, which has about US$9.2 billion in assets under its management according to Chinese consultancy ITJuzi.com, ascribed the move to operational challenges brought about by a changing investment environment.
“Over the last decade, the investment landscape has shifted significantly, and the operating environment has become highly complex,” the company said.