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 fund, focused on China, targeting up to $ 6 billion, three people said with knowledge of this matter.
Its fifth and largest fund, denominated in US dollars, is likely to close in the short term, said one of the people, who refused to be identified because the information is confidential.
Boyu did not immediately respond to a request for comment.
Fundraising by a firm widely associated with technology startups is tantamount to a high-quality test of investor appetite at a time when increased oversight of Chinese technology giants overshadows the short-term prospects of these companies.
Next is the November suspension of authorities from the double listing of Ant and Shanghai in Hong Kong, which has delayed the strong profitability of early investors such as Boyu, who could have expected the largest initial public offering (IPO). ) from the world.
The financial technology giant was to raise $ 37 billion at a valuation of $ 315 billion. Since the suspension, China has sharpened surveillance of its home champions, exposing its investors to more public scrutiny.
A central bank official said the Ant IPO had been suspended to protect consumers and investors. Ant has since agreed a restructuring plan with regulators, Reuters reported this month.
ALIBABA AID
Boyu was founded in 2010 by, among others, Alvin Jiang, the nephew of former President Jiang Zemin. The company has offices in Beijing, Shanghai, Hong Kong and Singapore and invests in the consumer and retail sectors, financial services, healthcare and media and technology, its website said.
He is known for his 2012 investment in Alibaba Group Holding Ltd, which helped Ma buy half of Yahoo! 40% of Inc’s stake in the e-commerce company, Reuters reported.
At $ 6 billion, Boyu’s new fund would be one of the region’s largest concentrations on China. It last raised $ 3.6 billion in 2019.
Investors in the past include Hong Kong’s richest man Li Ka-shing and Singapore’s state investors Temasek Holdings Ltd and GIC Pte Ltd, Reuters reported. The New York Mutual Fund was also an investor, the state comptroller’s website said.
Private equity managers in Asia raised $ 108 billion last year for 481 new funds, down 45 percent in dollars from 2019, according to Preqin data, as the COVID-19 pandemic eased fundraising.
Activity has grown in 2021, with $ 21 billion raised through 56 funds so far, the data show.
TECHNICAL INVESTMENTS
Boyu invested $ 4.5 billion in Ant’s fundraising in 2016 and $ 14 billion in funding two years later. Meanwhile, Ant’s valuation has dropped from $ 60 billion to $ 150 billion.
The private equity firm has invested in other growing Chinese technology and healthcare companies in recent years, which have generated lucrative profits, two people said.
Portfolio companies include Didi Chuxing, artificial intelligence (AI) firm MegVii and live streaming application operator Kuaishou Technology, according to media reports and public information.
In January, it participated in a $ 700 million fundraiser by AI 4Paradigm, Dealogic said.
Reporting by Kane Wu; Editing by Sumeet Chatterjee and Christopher Cushing