IBM and Lehman Brothers create $180 million China venture fund

IBM and investment bank Lehman Brothers have set up a $180 million fund to invest in Chinese companies to help them transform themselves through the adoption of IT and new business practices.

IBM and Lehman Brothers each contributed $90 million to the newly established China Investment Fund. Unlike venture capital funds that target start-up companies, this fund will also make investments in midstage and mature companies, providing them with management and technology expertise as well as cash, they said.

The China Investment Fund will invest in companies across a range of industries, the companies said. They did not say when the fund would make its first investment.

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IBM and investment bank Lehman Brothers have set up a $180 million fund to invest in Chinese companies to help them transform themselves through the adoption of IT and new business practices.

IBM and Lehman Brothers each contributed $90 million to the newly established China Investment Fund. Unlike venture capital funds that target start-up companies, this fund will also make investments in midstage and mature companies, providing them with management and technology expertise as well as cash, they said.

The China Investment Fund will invest in companies across a range of industries, the companies said. They did not say when the fund would make its first investment.

The joint fund with Lehman expands IBM's involvement with investors in China, where the company has provided technology and expertise to 250 start-up companies backed with venture capital. This is the first time the companies have worked together on investments, they said.

The IDG News Service is a Network World affiliate.