IDG Capital to deploy more resources in firms, eyes tech assets

Matthew Miller

* Says in the past 'we made some mistakes and sold too

early'

* Mobile remains a core focus for the IDG Capital

BEIJING, April 14 (Reuters) - IDG Capital, a private equity

and venture capital firm, will deploy greater resources and time

in companies as they grow, in contrast to some quick exits in

the past, Global Chairman Hugo Shong told Reuters in an

interview.

IDG Capital, which together with China Oceanwide Holdings

Group recently bought tech publisher International Data Group

for an estimated $1.5 billion, will also look to increase and

extend its investments in telecoms, financial technology and

advanced manufacturing, Shong said.

The firm presently manages more than 10 funds and has assets

under management estimated at over $7 billion. It completed 17

exits, including three IPOs and 14 strategic sales, last year.

"In the past, we made some mistakes and sold too early,

because our initial fund size was too small," said Shong. "(If)

you don't have money to follow on, you can only exit."

Finding talented managers is always challenging, Shong said.

It is hard to find "entrepreneurs who can run a scalable

business ... some entrepreneurs at the early stage are pretty

good, but once you get to the size where you're managing 2000

people it can get tough", he added.

Shong did not provide any details on fundraising plans.

He said "mobile remains a core focus" for the firm.

IDG Capital's portfolio includes Meitu Inc, a

mobile hardware and app maker that raised HK$4.88 billion ($623

million) at its December IPO, Internet search behemoth Baidu Inc

and smartphone maker Xiaomi Inc.

Its recent investments include online game developer Gbits

Network Technology, interactive social video

platform Tian Ge Interactive Holdings, and CreditEase,

a wealth and credit management firm and parent of Yirendai

, an online consumer finance marketplace.

The International Data Group buyout, which closed in March,

gave IDG Capital control of the firm's venture investments in

companies spanning the United States, South Korea, India and

Vietnam.

The deal also provided China Oceanwide, a real estate and

financial holdings conglomerate headed by tycoon Lu Zhiqiang,

control of International Data Group's publication assets, such

as Computerworld magazine, and market researcher IDC.

Shong said the buyout was an "emotional" decision, following

a promise made to International Data Group founder Pat McGovern

before his death in 2014 to maintain his businesses and

philanthropic legacies.

McGovern provided the funding to establish the McGovern

Institutes for Brain Research at MIT and in China.

IDG Capital's partnership with China Oceanwide came together

following a friendly lunch in Beijing during the bidding process

after each had submitted a separate offer, Shong said.

IDG Capital also has many industrial technology investments.

In March, it and other Chinese investors completed the buyout of

Ledvance, an LED maker, from Munich-based lighting group Osram

GmbH for 500 million euros ($531 million).

($1 = 0.9422 euros)

($1 = 7.7730 Hong Kong dollars)

(Reporting By Matthew Miller; Editing by Himani Sarkar)