US pension manager TCDRS commits $200m to Hillhouse Capital’s funds

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

The $34-billion Texas Country & District Retirement System (TCDRS) has committed a total of $628.5 million to private equity funds, including three Hillhouse Capital funds, in September and October, according to its recent investment activity disclosure.

TCDRS, which was created in 1967 to provide Texas country and district employees with retirement, disability, and survivor benefits, committed a total of $200 million to funds managed by Hillhouse – $85 million to Hillhouse Focused Growth Fund V, $15 million to Hillhouse Venture Fund V, and another $100 million to Hillhouse Fund V.

Reuters earlier reported that Asia-focused PE powerhouse Hillhouse Capital is raising what would be Asia’s largest US dollar-denominated fund targeting $13 billion.

The dollar fund, the firm’s fifth, will comprise around $1 billion for venture investment, $2.5 billion for growth-stage companies, and the rest for buyout deals, according to the report.

The private equity major closed the predecessor vehicle, USD-denominated Hillhouse Fund IV, at $10.6 billion in 2018 targeting investments across healthcare, consumer, technology, and services sectors globally, with a focus on Asia, per its website.

Founded by Lei Zhang in 2005 in Beijing, Hillhouse has positioned itself as a global investor with a focus on Asia. Hillhouse’s marquee limited partners include Canada Pension Plan Investment Board, San Francisco Employees’ Retirement System, Yale University, Mayo Clinic, among others.

Its prominent portfolio companies include Airbnb, Uber, Traveloka, Didi, JD.com, Tencent, Meituan, NIO, Beijing-based global biotechnology firm Beigene, Chinese women’s shoe retailer Belle International, among others.

Aside from its commitments to Hillhouse funds, TCDRS also committed $22.5 million to Shine Capital I, $125 million to TCV XI, $95 million to Khosla Ventures VII, $30 million to Khosla Ventures Seed E, and another €90 million to WPEF VIII Feeder.

As of December 31, 2019, TCDRS had nearly $34 billion in net plan assets, and a funded ratio of 89.4 per cent, excluding its general reserve funds.

Last year, TCDRS has committed $55 million into Joy Capital III, managed by venture capital firm Joy Capital. Besides, it has also committed $30 million in Sky9 Capital Fund IV and another $10 million in Sky9 Capital MVP Fund, both managed by Chinese early-stage focused venture capital firm Sky9 Capital.

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.