Hong Kong’s Hermitage Capital stays devoted to top-tier tech stocks amid jitters
Even as geopolitical frictions and market swings unsettle venture investors, Hong Kong-founded Hermitage Capital is sticking to a global strategy of backing frontier technology companies wherever they emerge. With a US$1.5 billion war chest that is 80 per cent in US dollars, with the remainder in renminbi, the private equity firm is ramping up investments across artificial intelligence,…
Despite geopolitical tensions and market fluctuations unsettling venture investors, Hong Kong-based Hermitage Capital remains committed to a global strategy focused on investing in leading-edge technology companies. With a $1.5 billion fund, 80% in US dollars and the rest in renminbi, the firm is increasing investments in artificial intelligence, semiconductors, and robotics, primarily in the US and China.
CEO Sean Xiang Yuqiu emphasized the importance of supporting top-tier technology firms, even during periods of low sentiment and high valuations.
Since launching its $500 million AI and robotics investment plan last year, Hermitage has already invested over $200 million. Founded in 2017 by a former JPMorgan Chase banker, the firm has institutional investors and wealthy family offices from Asia comprising around 80% of its capital, with others in the UK and Canada.
Adhering to a simple, unyielding investment thesis during turbulent times, Hermitage's strategy has evolved. Formerly focused on raising US capital for Chinese deals, the New York office now sources and evaluates American firms. Hermitage's portfolio of over 30 companies is equally split between China and overseas markets, mainly the US.
Despite China's concentration of engineering and manufacturing capabilities, Xiang remains confident in its resilience, crediting geopolitical headwinds for forcing domestic chipmakers to innovate and secure local customers.
Hermitage typically invests in series B and D rounds, backing its top picks across multiple market cycles. The company has participated in 13 funding rounds for Airwallex, five for Horizon Robotics, and three for MetaX Integrated Circuits. Recently, Hermitage has shifted focus from foundation models to physical AI, as it recognizes the sector's potential for growth.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
