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.