REALWAY CAPITAL (ASX: 01835) has announced its intention to acquire limited partnership interests in two funds focused on the smart driving sector.

The company plans to purchase approximately 16.99% of the total capital commitment in the Ningbo Chentao Fund from Mr. Liu Kun and about 44.12% of the total capital commitment in the Jiaxing Shinno Fund from Ms. Liu Dongmei. The total consideration for these acquisitions amounts to 40 million yuan, with 25 million yuan allocated for the Ningbo stake and 15 million yuan for the Jiaxing stake.

The Ningbo Chentao Fund was established as a limited partnership in China in August 2018. Its investment objective is to achieve long-term capital appreciation through private equity investments in companies specializing in smart driving and embodied AI. As of the announcement date, the total capital commitment from all partners to this fund stands at 500 million yuan.

The Jiaxing Shinno Fund was formed as a limited partnership in China in February 2022. It aims to generate long-term capital growth by making private equity investments in firms focused on the smart driving sector. The total capital commitment from all partners for this fund is currently 62 million yuan.

In both funds, the general partner is responsible for management, control, and operations, including all investment and divestment decisions.

The company views these acquisitions as an opportunity to gain exposure to a portfolio of projects within the high-growth smart driving and embodied AI sectors by acquiring limited partnership interests. This move is seen as an entry into fund management within a dynamic technology field.

This strategic step is expected to help the group optimize its investment portfolio structure and capitalize on opportunities in emerging industries supported by national policies. It will also allow the group to leverage the general partners' networks and expertise, aiming to enhance overall capital operation efficiency, diversify revenue streams, and generate higher potential investment returns.

The acquisitions align with the group's business strategy of creating new growth opportunities and delivering substantial long-term investment returns for shareholders.

The company intends to continue operating its existing fund management business in real estate and non-performing assets as its primary activity. Concurrently, it will explore potential investment opportunities in the smart driving and embodied AI fields, either through funds it establishes and manages or via direct acquisitions or subscriptions of interests in relevant investment companies.