Primavera beats $1.5bn target for Fund II

The China-focused firm raised $1.9bn for its latest vehicle, significantly larger than its $432m predecessor fund.

Beijing-based private equity firm Primavera Capital Group held a final close on its second China focused vehicle on $1.9 billion last week, exceeding its $1.5 billion target, according to industry sources and media reports.

Primavera, which specialises in growth opportunities, buyouts and special situations in China, began raising capital for Primavera Capital Fund in 2014. The firm held an interim close on at $482.8 million according to an SEC filing in September this year.

The Pennsylvania State Employees' Retirement System (PennSERS) committed $50 million to the fund, according to PEI data.

The firm's predecessor fund, 2013-vintage Primavera Capital RMB Fund I (Chunhua RMB Fund I), raised CNY 3 billion ($432 million; €415 million).

In September, the firm teamed up with Alibaba-backed online financial services provider Ant Financial Service Group to acquire Yum China for $460 million. Under the agreement, Primavera and Ant Financial will invest $410 million and $50 million, respectively, in Yum China, the China business of Yum! Brands, owner of KFC and Pizza Hut.

Primavera declined to comment on fundraising.