Chinese private equity firm Boyu Capital has filed to raise a new PE fund barely two months after it closed its latest US dollar-denominated vehicle with a reported $3.6 billion in committed capital.
The newest filing with the US Securities and Exchange Commission did not disclose the target for Boyu Capital Fund V but a Reuters report in February said the US dollar-denominated China-focused fund will be the firm’s largest at about $6 billion.
At that amount, Boyu‘s new fund would also be one of the region’s largest PE vehicles focusing on China.
Boyu, an investor in Chinese technology giants including billionaire Jack Ma’s Ant Group, also did not disclose the timeframe for the fundraising but said the offering will not last more than a year.
Boyu has not been disclosing financial details of its funds but it has been known for closing its fundraising activity in short term. It raised about $2.1 billion in 2016.
Its fourth fund received strong backing from its existing investors. The New York Common Retirement Fund also came in as a limited partner in the fourth fund, committing $40 million.
The PE firm’s past investors include Hong Kong’s richest man Li Ka-shing and Singapore state investors Temasek Holdings Ltd and GIC Pte Ltd.
Founded in 2010, Hong Kong-based Boyu counts former TPG Capital senior executive Mary Ma and Alvin Jiang, also known by his Chinese name Jiang Zhicheng, the grandson of former Chinese president Jiang Zemin, as partners.
The firm rose to fame when it invested in e-commerce giant Alibaba Group in 2012 and becomes known for cutting other lucrative deals in China, such as the purchase of a controlling stake in Sunrise Duty Free, a retailer with outlets at Beijing and Shanghai airports, in 2011 and the 2015 privatisation of then New York-listed WuXi PharmaTech, China’s largest contract medical researcher.
In 2016, the firm invested in Ant’s $4.5-billion fundraising and $14 billion funding round in 2018. Its portfolio also includes ride-hailing giant Didi Chuxing, on-demand services provider Meituan Dianping, artificial intelligence firm MegVii, and live streaming app operator Kuaishou Technology.
The fundraising comes as China continues to see a vibrant PE market despite the global coronavirus pandemic. In 2020, China’s total PE deal value rose to $97 billion, a 42-per cent increase from 2019 and 22 per cent higher than the previous five-year average, according to the latest report by global advisory firm Bain & Co.
The 2020 growth in China was a sharp rebound from a 35 per cent drop in 2019. China’s PE transactions helped push Asia Pacific’s 2020 deal value to a record high of $185 billion last year, the report noted.
