(Yicai) July 11 -- Chinese investment fund LongRiver Investment has recently completed its US dollar-denominated debut fund, which became one of the largest in the Chinese venture capital industry in recent years.

LongRiver secured nearly USD400 million from long-term institutions, including overseas insurance companies and asset managers, Yicai learned from Zhang Jiang, founder and chief executive officer of the fund. LongRiver, which has a term of 10 plus two years, mainly invests in the healthcare, technology, and new energy sectors.

The number of venture capital deals by US dollar investors in China plunged to a four-year low last year because of the impact of geopolitics, high overseas interest rates, and exit uncertainties. The overseas environment also faces similar challenges brought about by the macroeconomic situation.

Despite the exit uncertainties of Chinese VC funds worth over CNY1 trillion (USD137.5 billion) and fewer initial public offerings in Hong Kong and the US by Chinese companies, Zhang believes that LongRiver has a better chance to choose a good exit time because of its tenure of at least 10 years.

Mergers and acquisitions and onshore and offshore listings remain the main exit channels available, Zhang said.

Some 158 Chinese companies had filed for offshore IPOs since the new management system came into effect on March 31 last year as of June 18, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Lujiazui Forum. Eighty-five companies went public in Hong Kong and 73 in the US.

Despite lower US dollar investments in China, some overseas institutional partners from Singapore and Europe are still eyeing opportunities in the Chinese market.

Investors mainly focus on competitive innovative companies as they try to discover the next-generation industry leaders, like battery manufacturer Contemporary Amperex Technology, short-video platform Douyin, and e-commerce giant Pinduoduo 10 years ago, Zhang noted.

“Our responsibility is to identify and invest in such companies today and accompany and support them to become the industry leaders for the next decade,” said Zhang, who is also a member of the first and second Sci-Tech Innovation Advisory Committee.

LongRiver is also preparing a Chinese yuan fund to provide the future industry leaders with support from international and domestic resources, Yicai learned.

Editor: Futura Costaglione