5Y Capital Management Limited
Native name
五源资本
FormerlyMorningside Venture Capital (晨兴资本)
TypePrivate
IndustryVenture Capital
Founded2008
FoundersShi Jianming (Ken)
Liu Qin (Richard)
HeadquartersWuyuan Road, Shanghai, China
ProductsInvestments
AUM$5 billion (31 March 2021)[1]
Websitewww.5ycap.com
Footnotes / references
[2]

5Y Capital (Chinese: 五源资本; pinyin: Wǔyuán zīběn) is a Shanghai-based venture capital firm founded in 2008. It was previously known as Morningside Venture Capital before it rebranded in October 2020.[3][4][5]

Background

5Y Capital was founded in 2008 by Ken Shi and Richard Liu under the name, Morningside Venture Capital.[1][6][5]

Prior to founding the firm, Liu and Shi worked as investment professionals at the Morningside Group, a family office founded in 1986 by Gerald Chan and his family.[4][6] The Chan family currently runs the Hang Lung Group in Hong Kong.[7]

As a gesture of support, Morningside Group authorized the firm to use the ‘Morningside’ brand in its operations as well as being a key investor in the firm.[6]

In October 2020, the firm rebranded to 5Y Capital. The name comes from 'Wuyuan Road' which is the street where the firm has been headquartered since its inception.[1][3][4]

In 2021, Bloomberg reported that the firm was seeking to raise a new fund, and that it had delivered a $30 billion return on its investment in Kuaishou.[8] It closed a number of funds after reaching hard caps that year.[9]

In 2021 it had offices in Shanghai, Beijing, Shenzhen, and Hong Kong, and managed around $5 billion in assets.[1][9]

Investment model

5Y Capital focuses on early-stage venture investments in different sectors.[1]

Notable investments include Xiaomi,[4] Kuaishou,[4] SenseTime,[4] Trip.com[10] and XPeng[1]

Controversies

In 2021, 5Y Capital was alleged to have conducted illegal fundraising from the public. On the evening of 15 January, the company issued a statement claiming that this was false, self-proclaiming that it had never authorized any entity or individual to conduct public fundraising activities.[11]

On 9 April 2021, 5Y Capital reduced its stake in Xiaomi, but made an erroneous disclosure, with the disclosure document of its interest accidentally appearing in the change of interest of Kuaishou Technology.[12]

References

  1. 1 2 3 4 5 6 "Xiaomi backer closes $2bn worth of dollar and yuan funds". Nikkei Asia.
  2. ↑ "Form ADV" (PDF). SEC. Retrieved 24 November 2022.
  3. 1 2 Ku, Larissa (22 October 2020). "Morningside Venture Capital rebrands as 5Y Capital".
  4. 1 2 3 4 5 6 Chen, Lulu Yilun (18 February 2021). "Venture Firm That Made $30 Billion on Chinese Video App Plans New Fund". Bloomberg. Archived from the original on 18 February 2021. Retrieved 30 May 2021.
  5. 1 2 "Who Is 5Y Capital?". The Wire China. 18 July 2021.
  6. 1 2 3 "Chinese Venture Capital Firm Morningside Venture Capital Becomes 5Y Capital -Asian Wealth Management and Asian Private Banking". Hubbis.com. 3 November 2020.
  7. ↑ "Gerald L. Chan | Harvard China Fund". hcf.fas.harvard.edu. Retrieved 30 May 2021.
  8. ↑ "Venture Firm That Made $30 Billion on Chinese Video App Plans New Fund". Bloomberg. 2021.
  9. 1 2 "Xiaomi backer closes $2bn worth of dollar and yuan funds". asia.nikkei.com. 2021.
  10. ↑ "5Y Capital, US$35b stakeholder in Kuaishou, to raise US$1b for start-ups". The Standard. 18 February 2021. Archived from the original on 18 February 2021.
  11. ↑ "五源资本声明：从未授权任何实体或个人开展公开募资活动|界面新闻 · 快讯". www.jiemian.com. Retrieved 3 May 2022.
  12. ↑ "Incorrect disclosure of equity information for 5Y Capital". Sohu. 14 April 2021.
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