The former private equity chief at the family office of Alibaba co-founder Joe Tsai has reportedly set up his own fund to target wealthy investors.
Danny Lee set up Cayman-domiciled VCA Capital in 2022 and is now seeking to raise $200 million for his own fund in the next 12 to 24 months, according to a «Bloomberg» report. VCA currently has an investment management team of three, including Lee, all of whom are based in Hong Kong.
Lee is working with a broad group of investors across the tech, real estate, media and financial sector to invest in capital overseas. The fund will target companies with strong cash flow, strong margins and pre-tax earnings of at least $10 million. In terms of investors, it will target wealthy individuals, including those from China.
«Chinese families are starting to learn […] to diversify. That’s one of their biggest considerations,» Lee said, adding that many are looking at the US, Europe and Southeast Asia.
China Opportunity
Despite crackdowns in recent years, Lee does not think China is «uninvestable», noting that it is home to the largest private equity market in Asia. But he admits that growth is slowing compared to before and return expectations have been moderated.
«In 1998, when I started investing, you could invest in any manufacturing export business with your eyes closed and they’d be growing at 30 percent. Those days are over,» he said.
Lee has two decades of experience, including stints with Bain Capital and Blue Pool Capital, the family office of Alibaba co-founder Joe Tsai. Lee left Blue Pool in 2021 and is currently a senior advisor at the firm.
