Hong Kong private equity firm Hermitage Capital has deployed more than US$200 million into artificial intelligence and robotics. The capital shift directs money toward hardware and automation.
This drawdown forms part of a three-year, US$500 million global tech allocation programme announced in 2025. The money comes from the firm’s wider US$1.5 billion asset base.
Hermitage manages a portfolio split evenly between China and overseas markets, primarily the United States. About 80 per cent of its capital base is held in US dollars, with the remainder in renminbi. Backers include Asian family offices, regional institutions, and investors in Britain and Canada. Sean Xiang Yuqiu, a former JPMorgan Chase banker who founded the firm in 2017, runs the fund across offices in Hong Kong and New York.
Capital is shifting away from early bets on large language models to secure positions in robotics, self-improving software and specialized silicon. Recent portfolio additions include US humanoid robot builder 1X, automated research platform Recursive Superintelligence, and Chinese robotics chip designer D-Robotics.
The investment thesis targets growth beyond pure software layers. “Foundation models were the sector to bet heavily on in 2023 and 2024,” Xiang said. “Physical AI is the sector to bet heavily on now.”
That repositioning follows sharp price corrections across public robotics equities in mainland China. Unitree Robotics dropped roughly 60 per cent from its peak after listing on Shanghai’s Star Market in August 2026. The drop forced private investors to price unproven manufacturing schedules more carefully.
Source link
