Rockley China

The Rockley China Fund is a US$200 million (1.4 billion RMB) expansion capital fund investing for sustainable growth in China.

The Rockley China Fund focuses on providing expansion capital for established companies with proven technologies in the energy and sustainability sectors for the China market, areas targeted for government support. There is a particular emphasis on the industries where the Rockley team have wide and deep expertise:

  • Semi-conductors
  • Sustainable Energy
  • Renewable Chemicals

After 12 years of investing in and managing businesses in China, along with developing high level government and private sector contacts, the Rockley China partners have been able to establish an attractive investment fund model with special Government support.

The Fund comprises an offshore US dollar limited partnership and co-investors with onshore joint venture investment companies including two key provincial government organizations.

Rockley Luxin, a fund with the Shandong High-Tech Investment Corporation (SDHTIC), the high technology venture fund owned by the Shandong provincial government. The fund is split as 37.5% from SDHTIC and 62.5% from Rockley.

Zhongying Rockley Fund, a fund with the Shanxi Small and Medium Enterprise Corporation (SSMEIC), the high technology venture fund owned by the Shanxi provincial government. SSMEIC has committed 60% of the fund with 40% coming from Rockley.

Rockley China Fund operations
Management of The Rockley China Fund is headquartered in Beijing and builds on the Rockley team’s experience of their current US$90m global investment portfolio and the significant existing activities in China.

The Fund is focused on expansion capital investments in companies with proven technologies to meet customer demand in the China market. This includes investments to drive efficiency and sustainability in established medium-sized firms in China’s hinterland, enabling them to scale up.

Target companies have strong cash generation potential and/or the likelihood of a major liquidity event within two to five years.

Competitive investment opportunities are generated by the Rockley team with the help of government partner leverage, alignment to central Government sustainability targets and the combination of under exploited production assets enhanced by Rockley’s globally sourced technology and improved working practices. Our investment model is driven by strong domestic demand in China for technologies to underpin sustainable growth as well as demand from export markets.

The Rockley team works closely with high level executives from its provincial government investment partners to generate and pre-screen investment opportunities and provide the local perspective on investment management. The relationships with these institutions and a wider network throughout China provide the Fund with an exceptional source of investment opportunities at advantageous valuations.

Track record in China
The Rockley team has a long history of investing in, establishing and running manufacturing and technology businesses in China:

Bookham Technology (Oclaro Inc.)

The successful establishment of major Chinese operations for Bookham Technology Inc (now Oclaro Inc) is one of the world’s leading producers of optical communications equipment for datacoms and telecoms networks. In 2002 the Rockley partners, who had founded the company, where instrumental in consolidating assembly and test operations from Canada and the UK in a new facility in Shenzhen and recruiting a Chinese management team to run the plant.

Other examples of Rockley portfolio companies:

Green Biologics
Green Biologics is a world leader in biobutanol technology that has recently signed landmark agreements with the China - UK Low Carbon Enterprise Co Ltd, the joint venture company of the China Energy Conservation and Environmental Protection Group and the UK’s Carbon Trust, and two of China’s major biochemical firms.

GBL is collaborating with its partners to roll out production of its next generation renewable chemicals and biofuels in China in a deal designed to boost China’s strategy of investment in renewable energy.

Laihe Rockley Biochemicals
Large scale commercial ABE producer using cellulosic material in their feedstock mix to produce 'green' chemicals such as butanol to replace petrochemical alternatives.

Shandong Micro-Sensor Photonics
Shandong Micro-Sensor Photonics, China, provides fibre optic sensor systems and services to the energy sector. The company’s clients include major coal, oil and power producers. The sensors are used in the coal mining industry to improve safety and the company’s technology was highlighted as world-leading during the Chilean mine disaster.

The sensors are also applied in the oil and gas industry to improve well extraction efficiency and in electrical power generation to optimise load efficiency. New markets to monitor CO2 sequestration and capture methane from coal mines are also emerging.

Simgui
China’s leading supplier of Epitaxial and silicon on insulate wafers for the domestic semiconductor industry. These products are crucial in the growing market for energy efficient semi-conductor devices.

Kotura Inc.
Kotura Inc. is a leading producer of silicon photonic circuits, which are used in fibre optic communication and sensing systems by telecom system manufacturers and computer companies. The company has assembly operations in China, which it will shortly be expanding to service the high level of demand for its products.