Primavera raises second-biggest domestic China fund – exclusive

The Chinese manager raised $600m more than the original target for its third vehicle, Private Equity International has learned.

Primavera Capital Group has closed on the second-biggest fund ever raised by a domestic manager dedicated to China, Private Equity International has learned.

The Beijing-based manager held the final close on $3.4 billion for Primavera Capital Fund III, $600 million more than its original target, according to a source with knowledge of the fundraising.

The vehicle is almost 80 percent larger than its predecessor, a 2014-vintage which raised $1.9 billion, according to PEI data.

It attracted commitments from US pensions including New York State Teachers’ Retirement System, which committed $100 million, and Pennsylvania State Employees’ Retirement System, which contributed $75 million, according to PEI data.

The vehicle is understood to employ the same investment approach as its predecessor, backing growth capital, buyout and control, and special situations transactions in China across internet and technology, financial services and consumer-driven sectors.

The firm has already made investments from the fund including in logistics affiliate Cainiao Smart Logistics Network, online residential marketplace Danke Apartments and e-commerce platform Xingsheng Youxuan.

Primavera did not return requests for comment by press time.