Cao Xi, a former partner of Sequoia China, announced on Friday that he and Tim Wang, a former secondary market partner of Boyu Capital, will jointly establish Monolith Management, an investment management institution.
Monolith’s first fund will be a technology-focused hedge fund. Specifically, Monolith will deepen the fields of software, life sciences and consumption driven by technology and innovation, focusing on secondary market investment and some primary market blooming projects.
Monolith’s first fund has exceeded $500 million, surpassing the planned subscription scale. Four top domestic first-line venture capital institutions, three companies with a market value of $100 billion and their founders, twelve companies with a market value of $10 billion and their founders in the ‘new economy’ field, and some famous offices and universities in China and abroad, all provided investment for Monolith.
Of course, these investments benefited from the excellent performance and stellar reputation of Cao Xi and Tim Wang in past business activities.
Cao Xi worked at Sequoia Capital China for nearly eight years, and participated in the establishment of the Seed Fund of Sequoia Capital China in 2018. He has invested in star projects such as Kuaishou, DouYu, Super Monkey, Tencent Music and Bota Bio.
Tim Wang was a partner in the secondary market business of Boyu Capital, a leading domestic investment institution. He has rich experience investing in the secondary market in the fields of science and technology and consumption. Earlier, he worked as an equity analyst at Goldman Sachs in Hong Kong.
The blurred boundary between primary and secondary markets is one of the most critical variables for promotion of the trending fund industry in the past few years. Monolith is undoubtedly a new case within this integration.
It is generally believed that secondary market investment needs industrial thinking to judge the commercial value of mature projects, while primary market investment needs a more reasonable exit plan. The résumés of Monolith’s two founding partners show the possibility of this integration.