Beijing's Tsinghua Science Park and the Singapore-based firm Ascendas Pte Ltd joined forces with the United States venture-capital firm KLM Capital to set up a China-based venture-capital fund in the Chinese capital Wednesday.

The US$50 million fund, called the Global Synertech Fund, is jointly sponsored by the three partners and is expected to begin operating by the end of this year.

"It will carry out equity-related investment in fast-growing and late-stage companies in IT, materials, energy and environmental technologies,'' said Mei Meng, managing director of the Tsinghua Science Park Development Centre.

Ascendas and Tsinghua can provide added benefit to the fund by using or deploying products and services developed by investor companies.

Cash from the fund is to be invested in foreign companies with high growth potential that have already set up in China or plan to do so, as well as Chinese enterprises that are expanding globally.

"The fund is aligned to Tsinghua's vision of nurturing pioneering enterprises. It will help to foster the creativity, entrepreneurship and management skills of local talent,'' said Mei.

Peter Mok, chief executive of KLM Capital, said: "The fund focuses on the strategic partnership between privately held offshore and Chinese enterprises in China, which is becoming a necessary springboard for the globalization of enterprises.''

The Global Synertech Fund is the first project under the broad-based partnership between Ascendas and Tsinghua Science Park, a leading Chinese university high-tech park.

Under the strategic co-operation contract between Ascendas and Tsinghua, the two partners will also undertake projects relating to the development of and investment in science parks and university campus real estate, as well as the establishment of high-tech incubators within China and the Asia-Pacific.

Ascendas has real-estate expertise in science, information technology, business and industrial parks, and a strong presence in Asian markets.

Tsinghua can take advantages of its renowned reputation, strong local network, expertise in developing science parks and the commercialization of research and development in China.

Chong Siak Ching, president and chief executive of Ascendas, noted that Tsinghua's illustrious reputation will open more doors for Ascendas in China. In turn, Ascendas can provide help Tsinghua extend its regional influence.

(China Daily 08-05-2003)