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By Kane Wu
HONG KONG (Reuters) – Chinese private equity firm Boyu Capital, an investor in Chinese tech titans including billionaire Jack Ma’s Ant Group, raises new China-focused fund targeting up to $ 6 billion , said three people familiar with the matter.
Its fifth and largest US dollar-denominated fund is expected to close in the near term, said one of the people, who declined to be identified as the information is confidential.
Boyu did not immediately respond to a request for comment.
Fundraising by a company largely associated with tech startups is a high-level test of investor appetite at a time when heightened scrutiny from Chinese tech giants is clouding the short-term prospects of these companies.
This follows the authorities’ suspension in November of Ant’s dual listing in Shanghai and Hong Kong, which delayed the high returns early investors like Boyu might have expected from the larger IPO (IPO ) in the world.
The fintech giant was set to raise $ 37 billion worth $ 315 billion. Since the suspension, China has stepped up oversight of its local champions, which has also exposed its investors to more public scrutiny.
A central bank official said Ant’s IPO has been suspended to protect consumers and investors. Ant has since agreed to a restructuring plan with regulators, Reuters reported this month.
ALIBABA HELP
Boyu was founded in 2010 by, among others, Alvin Jiang, grandson of former President Jiang Zemin. The company has offices in Beijing, Shanghai, Hong Kong and Singapore, and invests in the consumer and retail, financial services, healthcare and media and technology sectors, its website said. .
He is known for his 2012 investment in Alibaba Group Holding Ltd, which helped Ma buy out half of Yahoo! Inc’s 40% stake in the e-commerce company, Reuters reported.
At $ 6 billion, Boyu’s new fund is said to be one of the largest in the region focused on China. It last raised $ 3.6 billion in 2019.
Past investors include Hong Kong’s richest man Li Ka-shing and Singapore state investors Temasek Holdings Ltd and GIC Pte Ltd, Reuters reported. The New York Common Retirement Fund was also an investor, the state comptroller’s website showed.
Private equity managers in Asia raised $ 108 billion for 481 new funds last year, down 45% from 2019, Preqin data shows, as the COVID-19 pandemic dampened fundraising of funds.
Activity resumed in 2021 with $ 21 billion raised through 56 funds so far, the data shows.
TECHNICAL INVESTMENTS
Boyu invested $ 4.5 billion in Ant’s fundraising in 2016 and $ 14 billion two years later. In the meantime, Ant’s valuation has grown from $ 60 billion to $ 150 billion.
The private equity firm has invested in other booming Chinese tech and healthcare startups in recent years that have generated lucrative returns, two people said.
Companies in the portfolio include megaphone Didi Chuxing, artificial intelligence (AI) company MegVii and live streaming application operator Kuaishou Technology, according to media and public information.
In January, he participated in a $ 700 million fundraiser by AI company 4Paradigm, according to data from Dealogic.
(Reporting by Kane Wu; Editing by Sumeet Chatterjee and Christopher Cushing)
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