Zhang Lei’s more than $50 billion investment firm may raise about $4 billion to be split between its flagship Gaoling Fund and the Hillhouse China Value fund.
The two hedge funds operated under the Goldman Sachs Investment Partners division, which has about $4 billion in assets.
Xiaomi Corp. deserves to trade at a premium to global phone brands due to its market-share gains and faster growth trajectory, according to research from Morgan Stanley, one of banks leading its Hong Kong IPO.
ChinaRock’s strategy is to get in on the ground floor and then cash in big when companies are eventually sold or launch hotly contested public offerings.
The backing comes at a time when investors are balking at high fees and disappointing returns from the industry’s biggest managers.
If successful, it will be the biggest dollar buyout pool raised by the firm, which started in 2005 with $20 million from Yale University’s endowment.
An estimated 37 Asia-focused hedge funds started in 2017, the least since Eurekahedge started tracking data in 2000.
This comes at a time when funds betting on rising and falling stocks in Asia have gained more than 12 percent this year.
Assets managed by wealthy clans in the region have grown to more than $17 trillion.
Initial capital has been pledged by institutions including HS Group, a HK-based strategic investor.