Primavera closes fourth China fund on $4bn
China-based private equity firm Primavera Capital Group closed its fourth US dollar-denominated fund in February on target at USD 4bn.
AVCJ was informed of the final close by a source close to the situation. Primavera declined to comment.
The fund launched in early 2021 with a mandate to invest in China and in global companies that have a China angle. Primavera raised USD 3.4bn in the previous vintage in 2019 against a target of USD 2.8bn. Since then, the firm has broadened its geographic footprint, adding offices in Silicon Valley and Singapore to existing bases in Hong Kong and Beijing.
Primavera was founded in 2010 by Fred Hu, formerly Greater China chairman at Goldman Sachs. It raised USD 1bn for its debut US dollar fund in 2011 and then closed Fund II at USD 1.93bn in 2016.
Fund IV includes a China infant formula and child nutrition business that was carved out from multinational Reckitt Benckiser in 2021 at an enterprise value of USD 2.2bn. This came soon after an agreement to buy a controlling position in recruitment platform Zhaopin at an implied valuation of AUD 2.2bn (USD 1.7bn).
Later the same year, Primavera Capital Group invested USD 600m in two subsidiaries of Envision Group, a China-based manufacturer of wind turbines, smart batteries, and renewable energy management systems.
Primavera has also branched into the early-stage investment space, establishing Primavera Venture Partners in 2020. A debut US dollar fund closed on USD 250m last year and a renminbi vehicle is currently being raised. The fund was registered under China's Qualified Foreign Limited Partnership (QFLP) regime earlier this year, underlining interest in onshore investments among managers with US dollar-denominated pools of capital.
Last year, the firm also launched a carbon neutrality fund with a target of CNY 10bn (USD 1.5bn) and a private credit fund, for which it is seeking USD 300m.
Meanwhile, a special purpose acquisition company (SPAC) sponsored by an entity controlled by Hu and described as an affiliate of Primavera merged with Lanvin Group, a luxury fashion platform established by Fosun Group, at a valuation of USD 1.5bn.
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