Beijing-based PE firm Primavera Capital raises $3.4b fund: Report

Commercial buildings including the China Central Television (CCTV) Headquarters, center, stand in the central business district of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

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.

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.