Legend, Hony back WeWork in Asia push

A statement from WeWork co-founder and CEO Adam Neumann confirmed the "significant capital" commitment as part of a global expansion drive that has already created thousands of new jobs and businesses this year alone. The Financial Times reported the value of the deal at $430 million, tracking the company's valuation as rising from $5 billion in 2014 to $15 billion at the start of this year. The investment follows a $434 million round in mid-2015.

"Not only does WeWork have one of the largest addressable markets I have ever seen, but the quality of its execution and fit for the Chinese culture is unparalleled," Hony CEO John Zhao said. "Our investment in WeWork is both strategic and obvious."

Founded in 2003, Hony now manages seven private equity funds with a focus on building business in Chinese markets via value-add services. The firm is sponsored by Legend, which listed in Hong Kong last year. Legend contributed all the capital for Hony's $36 million debut fund, although the vehicle had a standard GP-LP structure. Other investors in Hony have included the National Social Security Fund, China Life Insurance, Goldman Sachs, Temasek and Canada Pension Plan Investment Board.

WeWork services include the design and construction of both physical and virtual shared workspaces and communities for the start-up sector. Installations offer office furniture and supplies, internet connection, coffee and extra amenities. The holistic strategy also provides for healthcare access and networking channels.

Growing regional interest in the entrepreneur support sector has recently been demonstrated by the Coworking Association of Asia-Pacific (CAAP), which has tracked a 61% increase in attendee participation over its past two conferences. CAAP membership now includes 783 working companies over 33 unique co-working spaces.

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• Topics
• Greater China
• Support services
• Expansion
• Hony Capital