China’s Hillhouse raises $10.6b for Asia’s largest private equity fund

Hillhouse Capital founder Zhang Lei. Photographer: Paul Yeung/Bloomberg

Asia-based private equity firm Hillhouse Capital – whose portfolio includes prominent firms like Airbnb, Uber, Meituan, Didi, Tencent, WuXi App – announced that it has closed its fourth vehicle, Hillhouse Fund IV, at a record-breaking $10.6 billion.

According to Hillhouse Capital, the oversubscribed vehicle will pursue global opportunities across healthcare, consumer, technology and services sector, with a focus on Asia.

The new fund sets a new record among private equity investors targeting Asia and surpasses KKR’s $9.3-billion third Asia-focused fund raised last year. It is also the biggest dollar buyout pool raised by Hillhouse, which started in 2005 with $20 million from a Yale University endowment.

The firm raised $2.2 billion in 2014 for its first pool dedicated to PE investments. Its second fund gathered $4.2 billion in early 2016.

In March, Hillhouse was reported to have received over $10 billion in commitments, nearly double the original $6.5 billion target set by the firm’s founder and CEO, Lei Zhang.

“We look forward to working with innovation-minded, world-class businesses and management teams seeking to deploy technology-driven solutions to create value for all stakeholders,” said Zhang.

Prior to founding Hillhouse, Zhang has had stints in the Yale Endowment and a global emerging market fund covering South Africa, Southeast Asia and China.

The firm aims to “reignite growth” through digital enablement of traditional businesses, as it has done in the retail space with its buyout of Belle International, the biggest women’s shoe retailer in China. Hillhouse and CDH Investments took Belle private in a $6.8-billion deal completed in July.

Based on data compiled by Bloomberg, Hillhouse was Asia’s most active private equity purchaser in 2016, racking up $26 billion of transactions, surpassing Bain Capital’s $20.5-billion deals in the region and KKR’s $16-billion acquisitions.

Another Hong Kong-based firm, Baring Private Equity Asia is currently on the road to raise up to $6 billion for its seventh vehicle and has recently hit the first close at $4.5 billion. This portal had first reported CVC Capital Partners is targeting to raise $4 billion to $5 billion for its fifth Asia fund and is looking to hit the first close by the first quarter of 2019.

Also read:

Hillhouse Capital’s latest PE fund secures $85m commitment from Texas County

Exclusive: CVC Capital Partners to hit first close for fifth Asia fund by Q1 2019

Texas Teachers pension fund commits $200m to Baring PE Asia’s seventh fund

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.