Hopu secures $2b first close on China fund
Hopu Investments, the China-focused private equity firm led by former Goldman Sachs banker Fang Fenglei, has reached a first close of $2 billion on its third US dollar-denominated fund.
The firm is targeting a final close of $2.5 billion by the end of the first quarter, according to sources familiar with the situation. Reuters reported in December of last year that China Investment Corporation (CIC), Temasek Holdings, and Mitsui & Co. had already committed capital to the fund.
Hopu closed its previous vehicle at $1.85 billion in late 2014, according to AVCJ Research. Canada Pension Plan Investment Board, Goldman Sachs, and Temasek are among the LPs. This represented a revitalization of a franchise established in 2007 by Fang and Richard Ong, now of RRJ Capital. They raised $2.5 billion fund but Ong departed three years later amid reports of tensions between the founders.
Hopu’s most high-profile recent deal is the S$15.9 billion ($11.5 billion) acquisition of Singapore-listed warehouse operator Global Logistic Properties. It participated in the transaction alongside Hillhouse Capital, Chinese property developer Vanke, a Bank of China (BoC) investment unit, and an entity controlled by GLP’s co-founder and CEO.
The private equity firm already held a minority interest in GLP, having invested $1.6 billion in 2014 in conjunction with several of its LPs as well as a BoC and China Life Insurance. A second tranche of funding from other investors took the total to $2.5 billion. In addition to a direct stake in GLP, the consortium owned about 30% of the company’s China subsidiary.
Hopu has also made investments in smart electric car maker Nio, social networking and shopping platform Mogujie, and US-based cancer treatment specialist Mevion Medical Systems. Another portfolio company, COFCO Meat, went public in Hong Kong in 2016.
Last year, the firm teamed up investors including CIC, Temasek and SoftBank-owned ARM Holdings to launch a technology investment fund. The Shenzhen-domiciled entity had a target of $800 million.
Several other China-focused private equity firms are also currently in the market. CDH Investments is seeking $2.5 billion for its sixth US dollar fund, while CITIC Private Equity and Primavera Capital have set targets of around $2 billion and $2.8 billion for their latest vehicles.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.