China’s Ant Group-backer Primavera raising up to $5b in new dollar fund

Chinese private equity firm Primavera Capital Group, an early investor in billionaire Jack Ma’s Ant Group, is raising a new U.S. dollar-denominated fund of up to $5 billion, two people with direct knowledge of the matter told Reuters.

The firm, an avid investor in China’s tech startups, is targeting $4 billion for its fourth dollar fund, with a hard cap at $5 billion, said the people, who declined to be identified as information related to the fundraising is confidential.

It is aiming to reach a first close within the next two months, one of the people said.

Primavera, which has offices in Beijing and Hong Kong, did not immediately respond to a request for comment.

The fundraising comes amid heightened regulatory scrutiny of China’s technology giants which has clouded their near-term outlook.

A tighter grip on the sector came after authorities’ November suspension of Ant’s Shanghai and Hong Kong dual listing, which delayed the hefty returns early investors could have expected from the world’s biggest initial public offering.

The financial technology giant was set to raise $37 billion at a valuation of $315 billion. It has since agreed on a restructuring plan with regulators, Reuters reported in February.

Primavera invested in Ant’s 2016 and 2018 fundraising, during which the company’s valuation leapt from $60 billion to $150 billion. The private equity firm’s founder and chairman, Fred Hu, serves as an independent non-executive director on Ant’s board.

Another Ant investor, Boyu Capital, is also targeting $6 billion for its new dollar fund, Reuters reported last month.

In February, Taiwan’s CTBC Financial Holding Co Ltd said it would invest no more than $20 million in Primavera‘s fourth dollar fund via unit Taiwan Life, without mentioning the total amount the fund was seeking.

Primavera has led investments in over 50 companies across tech, consumer, financial services, healthcare and education sectors, its website showed. It teamed up with Ant in the $460 million spin-off of Yum China Holdings Inc in 2016 and also invested in short video streaming giant Bytedance and online wealth platform Lufax Holding Ltd.

The firm more recently invested in community grocery shopping app Xingsheng Youxuan and job search site Zhaopin.com, and raised $414 million for a special-purpose acquisition company.

It closed its third dollar fund in November 2019 at $3.4 billion. Investors included CTBC and the Pennsylvania State Employees’ Retirement System, public disclosure showed.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.