Jack Ma-backed Yunfeng Selling $103m Shares In Chinas YTO Express

Yunfeng Capital, a private equity firm co-founded by Jack Ma from Alibaba Group and 15 other investors, is cutting its shareholding in Chinese delivery giant YTO Express Group by selling about Rmb700 million ($103.3 million) in shares, according to a stock exchange filing.

The Shanghai-listed YTO Express Group said Yunfeng, the company’s third-largest shareholder, plans to trim its 5.96 per cent shareholding, which is about 169 million shares, to fulfil its own capital demand.

Yunfeng’s planned share sale will cut its holding to less than 5 per cent, which will take the company out of YTO Express Group’s top five shareholders list. Shanghai YTO Jiaolong Investment and Hangzhou Ali Venture Capital are the largest and second largest shareholders in YTO Express.

Alibaba and Yunfeng Capital, a fund backed by Alibaba’s founder Jack Ma, own a stake in YTOExpress through a strategic investment deal announced in May 2015. Yunfeng’s plan to cut its stake in YTO Express Group comes after the Chinese courier named Pan Shuimiao as its new president.

Besides YTO Express Group, Alibaba’s investments in the Chinese courier sector includes STO Express, Best Inc, and ZTO Express (Cayman) Inc. Alibaba took a 14-percent stake in STO Express Co Ltd through a $693 million deal announced last month.

Yunfeng is the result of combining the Chinese first names of Jack MA (Yun), Chairman of Alibaba, and David YU (Feng), Founder of Target Media. It was established in January 2010 to become the only private equity firm in China set up by successful entrepreneurs, pioneers, and industry leaders.

The PE firm said its goal is not merely to be a financial investor, but also to share the entrepreneurial experience with companies, helping them refine their development, organizational management, and brand building strategies.

Last year, Yunfeng Capital closed a new investment fund after hitting its hard cap at $2.5 billion. The fund, Yunfeng Fund III LP, attracted 51 investors and included the sponsor’s commitment to both the issuer and its parallel fund. Yunfeng Fund II raised $1.2 billion while Yunfeng Fund raised Rmb10 billion (S1.5 billion) in 2011.

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