China's FountainVest reaches first-close in new private equity fund - source

Maoyan Entertainment

18/12/2020 06:44

By Kane Wu
    HONG KONG, Dec 18 (Reuters) - Chinese private equity firm
FountainVest Partners has raised $1.6 billion to reach the
first-close of its new private equity fund, one person with
knowledge of the situation told Reuters.
    The firm is targeting to raise $2.8 billion in its fourth
dollar-denominated fund with a hard cap set at $3.2 billion,
said the person, declining to be named as the information is
confidential.
    Many existing investors re-upped their commitments in the
new fund and the firm aims to complete the fundraising in the
first half next year, the person said.
    FountainVest declined to comment.
    The firm, led by former Temasek and Goldman Sachs dealmaker
Frank Tang, joins a slew of global and regional private equity
houses that are raising new funds as Asia gradually recovers
from the coronavirus outbreak.
    Asia-focused Hillhouse Capital Group is raising a $13
billion new dollar fund as well as over $3 billion in a yuan
fund, Reuters has reported.  urn:newsml:reuters.com:*:nL4N2G8292
    U.S.-based KKR & Co  KKR.N  also said in October it already
amassed over $13 billion in its flagship Asia private equity
fund.  urn:newsml:reuters.com:*:nL1N2HL1MP
    Founded in 2007, FountainVest has been an avid investor in
China's media and entertainment, sports and consumer-related
sectors.
    In June, it led a $750 million fundraising of online
tutoring startup Zuoyebang as the COVID-19 crisis spurs investor
interest in education technology.  urn:newsml:reuters.com:*:nL8N2E605R
   In 2018, the firm teamed up with China's ANTA Sports
 2020.HK  and internet giant Tencent Holdings  0700.HK  to buy
Finland's Amer Sports, which owns a range of sports brands
including Wilson and Arc'teryx, for $5.2 billion. 
    FountainVest's portfolio also include gym operator The Pure
Group, film ticketing and distribution firm Maoyan  1896.HK  and
pharmacy chain LBX  603883.SS .  
    The firm raised $2.1 billion in its last fund in 2016. It
made its name in 2012 when it joined Carlyle Group and other
Chinese investors in the $3.7 billion buyout of then U.S.-listed
advertising firm Focus Media. 

 (Reporting by Kane Wu; Editing by Lincoln Feast.)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))