US-based private equity investment firm Matrix Partners has rebranded its China arm as MPC in English, the initials of Matrix Partners China, keeping the Chinese name unchanged starting from July 1. Matrix Partners is the latest dollar fund to make its China operations independent amid geopolitical concerns, following Sequoia, BlueRun, and GGV Ventures.
At the same time, the firm said it would also rebrand its Indian business to DZ47.
Why it matters: Matrix Partners’ renaming reflects greater independence for its China operations, according to the company, but stops short of a complete split from its international operations, the path that many of its US counterparts have opted for.
Details: “Each team’s leadership has operated with separate decision-making and separate back offices from inception,” the US-headquartered venture firm said in a notice, emphasizing that the renaming is driven by a desire to clarify “regional market dynamics” and a continued focus on “competing locally.”
- In China, Matrix Partners’ investment reach includes companies in the Internet industry, healthcare, and retail fields, with Xpeng, Li Auto, and Ele.me being its best-known assets.
- The firm set up its China unit in 2008, managed by partners Zhang Ying, Xu Chuansheng, and Shao Yibo, 30 years after it was founded in Boston. MPC currently manages more than RMB 70 billion ($9.6 billion) worth of assets, its official website shows.
- The 16-year history of the early-stage-focused VC company in China has run alongside booming growth in the country’s Internet service industry. In an interview with local media outlet ChinaVenture, Zhang Ying said China’s faster economy and technological growth provided him with a “perfect starting point” for in-depth investment activities.
- Zhang added that he believes there will be a prolonged period ahead where investing in entrepreneurship will become “increasingly difficult,” due to the continued changes in the international landscape.
Context: In the past year, several US venture capital firms have split off their China arms as independent operations have felt increasingly like a better choice due to heightened geopolitical tensions and the increased likelihood of US-China technological decoupling.