SK Holdings forms mobility fund with Geely, Volvo's owner

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SK Holdings forms mobility fund with Geely, Volvo's owner

SK Holdings CEO Jang Dong-hyun, right, and Zhejiang Geely Holding Group CEO Daniel Li sign a contract to participate in the New Mobility Fund as ″anchor investors,″ Thursday. [SK HOLDINGS]

SK Holdings CEO Jang Dong-hyun, right, and Zhejiang Geely Holding Group CEO Daniel Li sign a contract to participate in the New Mobility Fund as ″anchor investors,″ Thursday. [SK HOLDINGS]

 
SK Holdings has formed a fund with the Chinese owner of Volvo and Lotus to invest in mobility start-ups.
 
On Thursday, it signed a contract with Hangzhou’s Zhejiang Geely Holding Group to participate in the “New Mobility Fund” as anchor investors. The fund is managed by Geely subsidiary GLY Capital Investment, based in Hong Kong.  
 
Geely is China’s largest privately-owned automaker, SK said.  
 
The “New Mobility” fund is aiming to raise $300 million this year. SK and Geely are each providing $30 million and raising the rest from institutional investors, such as European banks and national pension funds in Asia.  
 
Investors will be able to participate through three funding rounds this year. The first was closed in January. The next round is set to close in June and the last by the year’s end.  
 
The fund will focus on ventures and start-ups engaged in connectivity, autonomous driving, sharing services and electric vehicles.  
 
“The surge in new technologies and changes within the mobility sector are making getting around increasingly cleaner, smarter and more connected,” said Hrvoje Krkalo, GLY Capital Management CEO.
 
“Within the New Mobility Fund, we will support and follow the success of those companies enabling such change.”  
 
Both companies will play central roles in fund-raising and execution in the project as “anchor investors.” Their executives will form a New Mobility Fund “Strategic Advisory Board,” to “provide industry insight to [GLY] and guide it in sourcing, evaluating and potentially commercializing portfolio companies,” Geely said in a statement.
 
The board will also take charge of dialogue between the two companies on potential partnership opportunities in areas including renewable and hydrogen fuels, batteries, materials, semiconductors and autonomous technology.
 
“The collaboration was possible due to our common goal of preparing for future growth and strong belief in the importance of working closely with the financial market,” said Jang Dong-hyun, CEO of SK Holdings.  
 
BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]
 
 
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