Beijing-based private equity firm Primavera Capital Group has raised $3.4 billion for what is the second-largest China-focused fund raised by a local manager, according to a Private Equity International report.
Primavera Capital Fund III, which originally had a $2.8 billion target, will make control-oriented and growth capital investments in established businesses primarily domiciled in China or with a significant connection to the region. It hit its first close last year at $1.5 billion, after raising $490.5 million from 33 investors that month, per an SEC filing.
In March this year, it secured a capital commitment of $75 million from the Pennsylvania State Employees’ Retirement System. It had also secured a $100 million allocation from the New York State Teachers’ Retirement System last year.
Primavera, which has offices in Beijing and Hong Kong, manages both RMB and USD funds for leading institutions, corporations, and families in China and around the world. The firm’s investments cover growth capital, buyout and control deals, as well as special situations in China.
It closed its previous USD-denominated fund at $1.9 billion in 2016, making its latest fund almost 80 per cent larger than its predecessor.
Other large China-focused private equity funds include CITIC Capital’s $2.8-billion fourth fund, which was closed in August this year. The largest of these vehicles is arguably Boyu Capital’s $3.6 billion fund, which Reuters reported was closed in March this year. Boyu has not confirmed the capital raise so far.
In the first half of 2019, China-focused private equity and venture capital managers raised $17.3 billion in dollar-denominated funds, up by over $4 billion compared to the same period last year, according to data provider Preqin.