HONG KONG (Reuters) – Chinese private equity firm Boyu Capital, an investor in Chinese technology titans including billionaire Jack Ma’s Ant Group, is raising a new China-focused fund for as much as $ 6 billion, said three knowledgeable people. . .
The fifth and largest US dollar-denominated fund is likely to close shortly, one of the people said, who declined to be identified because the information is confidential.
Boyu did not immediately respond to a request for comment.
The fundraising by a company widely associated with tech startups amounts to a high-profile test of investors ‘appetites at a time when increased scrutiny of Chinese technology giants is blurring those companies’ short-term prospects.
It follows the suspension of Ant’s dual listing in Shanghai and Hong Kong in November, delaying the hefty returns early investors like Boyu could have expected from the world’s largest initial public offering (IPO).
The financial technology giant is said to raise $ 37 billion against a valuation of $ 315 billion. Since the suspension, China has tightened supervision of its homegrown champions, also exposing their investors to more public scrutiny.
A central bank official said Ant’s IPO had been suspended to protect consumers and investors. Ant has since agreed on a restructuring plan with regulators, Reuters reported this month.
ALIBABA HELP
Boyu was founded in 2010 by Alvin Jiang, grandson of former President Jiang Zemin, among others. The company has offices in Beijing, Shanghai, Hong Kong and Singapore, and invests in consumer and retail, financial services, health care and media and technology, the website found.
It is known for its 2012 investment in Alibaba Group Holding Ltd, making Ma half of Yahoo! Inc’s 40% stake in the e-commerce company, Reuters reports.
At $ 6 billion, Boyu’s new fund would be one of the largest in the region targeting China. It last raised $ 3.6 billion in 2019.
Past investors include Hong Kong’s richest man Li Ka-shing and Singapore’s state investors Temasek Holdings Ltd and GIC Pte Ltd, Reuters reports. The New York Common Retirement Fund has also been an investor, the state inspector’s website found.
Private equity managers in Asia raised $ 108 billion for 481 new funds last year, down 45% in dollar terms from 2019, Preqin data showed, as the COVID-19 pandemic slows fundraising.
Activity increased in 2021 with $ 21 billion raised from 56 funds to date, the data showed.
TECHNICAL INVESTMENTS
Boyu invested in Ant’s $ 4.5 billion fundraising in 2016 and $ 14 billion in funding around two years later. In the meantime, Ant’s valuation jumped from $ 60 billion to $ 150 billion.
The private equity firm has invested in other thriving Chinese tech and healthcare startups in recent years that have generated lucrative returns, two of the people said.
Portfolio companies include ride hailer Didi Chuxing, artificial intelligence (AI) company MegVii and live streaming app operator Kuaishou Technology, according to media reports and public information.
In January, it took part in a $ 700 million fundraiser by AI company 4Paradigm, Dealogic data showed.
Reporting by Kane Wu; Adaptation by Sumeet Chatterjee and Christopher Cushing