US pension fund NYSTRS commits $150m to Primavera’s latest vehicle

Brooklyn Bridge, New York. Photo by Colton Duke on Unsplash

The New York State Teachers’ Retirement System (NYSTRS) has approved a commitment of $150 million to the latest US dollar fund of Chinese private equity (PE) firm Primavera Capital Group.

According to its latest private equity board reports, NYSTRS approved the commitment to Primavera Capital Fund IV LP last May.

The latest fund seeks to make growth and control-oriented investments in established businesses primarily domiciled in China or in businesses with a significant connection to China.

In June, Primavera disclosed that it already secured a combined amount of $546.7 million for the fourth USD dollar fund from 15 investors. The minimum investment that it accepted from any outside investor was $10 million.

The Chinese PE firm has not disclosed the target amount for the said fund but a Reuters report in March said Primavera was raising $4 billion for the USD vehicle, with a hard cap of $5 billion.

Primavera’s US dollar Fund IV followed the close of Primavera Capital Fund III at $3.4 billion in November 2019. The predecessor fund, which initially had a $2.8 billion target, was also backed by NYSTRS.

Fred Hu founded Primavera, an early investor in billionaire Jack Ma’s Ant Group, in 2010 after his tenure as partner and chairman of Greater China at Goldman Sachs, where he was instrumental in building the firm’s franchise in the region.

With offices in Beijing, Hong Kong, and Silicon Valley, Primavera manages both RMB-denominated and US dollar funds for financial institutions, sovereign wealth funds, pension funds, family offices, and corporations, among others.

Some of its prominent portfolio firms include TikTok-owner ByteDance; Chinese online video firm Kuaishou Technology; Alibaba’s logistics affiliate Cainiao; ride-hailing giant Didi Chuxing; online grocery app Xingsheng Youxuan; artificial intelligence (AI) companies SenseTime and 4Paradigm; and Lufax, one of the biggest online wealth management platforms in China.

On the other hand, NYSTRS is the second-largest public retirement system in the state and one of the 10-largest public pension funds in the nation.

As of June 30, 2021, the pension fund’s PE portfolio had 231 active partnerships across 80 sponsors. Its PE programmw and $24.2 billion in active commitments, approximately $13 billion in adjusted market value, and $7.2 billion in unfunded commitments.

The portfolio returned a net IRR of 13% and a net multiple of 1.7% invested capital, NYSTRS said.

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.