FountainVest closes Fund II at $1.35b
FountainVest Partners has closed its second China-focused fund at the hard cap of $1.35 billion after about eight months in the market. The vehicle is 40% larger than its predecessor with a large proportion of existing investors choosing to re-up.
When the GP announced a first close of just over $1 billion in July, AVCJ was told that commitments were already more than sufficient to meet the initial target of $1.25 billion and that the fund would likely reach its hard cap.
The anchor investors in Fund I - Ontario Teachers' Pension Plan (OTPP), Canada Pension Plan Investment Board (CPPIB) and Temasek Holdings - all participated in the first close for Fund II. Washington State Investment Board also came in with a $150 million commitment, three times its investment in the first fund.
Overall, North American and European institutional investors contributed the majority of the funding, while pension funds remain the largest investor type.
"We thank our existing LPs for their renewed vote of confidence in us, and welcome our new investors with excitement," said Frank Tang, CEO of FountainVest.
"We will continue our existing investment strategies and execution best practices through Fund II, supported by a high quality team consisting both of individuals who have been working together for many years and those joining us more recently as part of our significant expansion."
FountainVest was set up in 2007 by Tang, George Chuang, Chenning Zhao and Terry Hu, who previously comprised Temasek's China investment team. The GP follows three main themes: the rise of the middle class and domestic consumption, urbanization and industrialization, and sustainable development.
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