Backer of Tencent, Baidu and Airbnb, PE firm Hillhouse Capital raises $10.6 Bn

Hillhouse Capital, a Chinese investment company, has raised $10.6 billion for its new fund Hillhouse Fund IV. The development is exciting because this is the biggest ever round raised by any private equity firm in the region.

The new fund plans to invest across the healthcare, consumer, technology and services sectors globally, with a focus on Asia. It added that the new fund would also leverage its capabilities to drive long-term growth in portfolio companies.

Hillhouse Capital is an investor in Chinese technology firms including Tencent, Baidu, Magento, Grab and airbnb.

With the new funding, Hillhouse surpassed the past biggest fundraiser KKR & CO which raised $9.3 billion raised in June 2017.

Launched in 2005 by Zhang Lei, the investment firms have invested in China and other countries as well.

Hillhouse has also been actively funding in the mobility segment. It has invested in companies such as bike rental platform Mobike and EV startup Nio.

Besides, it has also invested in the Indian startup as well. During late 2014, it led a $50 million Series B round in CarDekho in India.

The Hillhouse fund adds to a massive industry-wide pool of money for Asian acquisitions and investments, with investors attracted by rapid economic growth and a growing number of technology companies compared to other major markets.

Some previous reports stated that Hillhouse Capital Group is in talks to buy Yum China Holdings Inc, which operates KFC restaurants in the country. It offered $46 per share for Yum China, but was rejected by the biggest fast-food chain.

The development was first reported by Reuters.