Hong Kong-based alternative asset management firm VMS Group has completed the first close of its Artificial Intelligence fund, 3Capital AGI Fund (3Cap Fund).

While the company did not disclose the size of the first close, it said over half of the vehicle’s target has been raised.

The 3Cap Fund is a joint venture between VMS and Esther Wong, an AI industry specialist and investor.

“With a deep understanding of AI’s transformative potential, we are committed to providing long-term capital to pioneering ventures,” said Esther Wong.

VMS has been actively investing in early-stage AI companies and key sub-segments within AI since 2018, with an aggregate investment exceeding $100 million.

The company’s first investment was in Pony.AI, an autonomous driving technology company in China.

Founded in 2006, VMS Group has been managing over $4.3 billion across private equity, real estate and structured finance, it has also seeded or accelerated other asset managers through strategic partnerships across venture capital and hedge funds.

VMS had closed its previous fund in 2019 at about $200 million and another in 2015 at about $100 million.

The asset manager primarily invests in healthcare, technology, and consumer businesses. It has led funding rounds in an array of Chinese companies including Chime Biologics, SoftBank-backed New Horizon Health, and SyMap Medical and also participated in automation startup Laiye’s Series C round.

It also has some portfolio companies outside of China—Israel-based Gamidacell and Korea’s Mediheal as well as a few in the US including Keyssa, Profusa, and Windtree.