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New buyout firm Rockets Capital holds $200m first close to invest in electric vehicle market

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Newly-established Rockets Capital has held a fist close of over $200m for its maiden fund.

The fundraise was led by strategic anchor investor, Chinese smart EV company Xpeng Inc., IDG Capital, eGarden, Sequoia China, 5Y Capital and GGV Capital also participated in the round.

The fund has already entered into agreements for investments, the firm said.

Rockets Capital was established early this year and will focus on venture and growth stage investments in smart electric vehicles industry value chain, clean energy and frontier technology areas, the firm said.

It will also leverage XPeng’s industry expertise and resources to incubate technological innovation.

The firm’s core investment team comes from smart EV companies, auto industry funds and venture capital funds. It said it has access to proprietary deal sourcing opportunities int he smart EV ecosystem.

Bing Yuan, managing partner of Rockets Capital, said,  “Our successful first closing, achieved amid the current global turmoil and challenging capital markets environment, is a strong endorsement of our differentiated positioning, investment strategy, and execution capability by our investors. It is also a testimony that in the constantly evolving investment industry, the low carbon economy and technology-driven development are the consensus investment trends.

“We are grateful to our investors for their trust, confidence and support, and with a shared vision, we will endeavor to capture the systematic investment opportunities arising from the global smart EV mega-trend as well as China’s drive towards a green economy and self-reliant technological ecosystem.”

Private equity houses have been making investments in the electric vehicle market.

Global buyout giant Blackstone bagged electric vehicle connector specialist Interplex from Baring PE Asia earlier in the year.

Singapore sovereign wealth investor GIC also teamed up with Lime Rock New Energy for electric vehicle charging business Qmerit deal last year.

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