<p>Private equity firm Hillhouse Capital Group is raising a fund targeting over 20 billion yuan ($3 billion), said people with knowledge of the matter, as it readies itself for opportunities offered by the eventual normalisation of the Chinese economy.</p>.<p>Hillhouse formally began fundraising for its largest-ever yuan fund in recent months, said one of the people. It is unclear when the fundraising will close but typical time frames are six months to over a year.</p>.<p>Details of the fund are reported here for the first time.</p>.<p>The move underscores a revival in private equity fundraising momentum in Asia, after new funds raised focusing on the region dropped to a seven-year low in the first half of the year, as buyout firms scrambled to pare exposure to virus-hit portfolios.</p>.<p>So far in July-September, only a little over $6 billion has been raised for Asia-focused funds, compared with the quarter's five-year average of $46 billion, showed data from Preqin.</p>.<p>However, top private equity firms' track record of landing big-ticket merger-and-acquisition deals and steady returns for their investors hunting yields in a low interest rate environment are helping revive fundraising activity.</p>.<p>Hillhouse is also raising what would be Asia's largest US dollar-denominated fund targeting $13 billion, said separate people with knowledge of the matter.</p>.<p>The dollar fund, the firm's fifth, will comprise around $1 billion for venture investment, $2.5 billion for growth-stage companies and the rest for buyout deals, said two of the people.</p>.<p>Hillhouse declined to comment. The people declined to be identified as they were not authorised to speak to the media.</p>.<p>Hillhouse's fundraising follows US-based KKR & Co Inc , which has raised over $11 billion for its latest Asia fund. Its target is $12.5 billion, sources have said.</p>.<p>Founded in 2005 by Chinese rainmaker Zhang Lei with seed funding from a Yale University endowment, Hillhouse is known for early investments in Chinese tech giants Tencent Holdings Ltd , JD.com Inc and Baidu Inc.</p>.<p>It raised $10.6 billion two years ago for Asia's biggest private equity fund, which invests in the healthcare, consumer, technology and services sectors globally, with a focus on Asia.</p>.<p>The firm won a bid last year to buy 15 per cent of China's largest air-conditioner maker Gree Electric Appliances Inc of Zhuhai for $7.5 billion. It also scored a $6.8 billion buyout of shoemaker Bell International with peer CDH Investments in 2017.</p>.<p>Most recently, it invested in biotech firm i-Mab as well as the initial public offering of online real estate broker KE Holdings Inc.</p>.<p>Hillhouse is looking to develop its real estate capabilities and has tapped ex-Warburg Pincus LLC real estate veteran Joe Gagnon to lead the efforts, Reuters reported last month. </p>
<p>Private equity firm Hillhouse Capital Group is raising a fund targeting over 20 billion yuan ($3 billion), said people with knowledge of the matter, as it readies itself for opportunities offered by the eventual normalisation of the Chinese economy.</p>.<p>Hillhouse formally began fundraising for its largest-ever yuan fund in recent months, said one of the people. It is unclear when the fundraising will close but typical time frames are six months to over a year.</p>.<p>Details of the fund are reported here for the first time.</p>.<p>The move underscores a revival in private equity fundraising momentum in Asia, after new funds raised focusing on the region dropped to a seven-year low in the first half of the year, as buyout firms scrambled to pare exposure to virus-hit portfolios.</p>.<p>So far in July-September, only a little over $6 billion has been raised for Asia-focused funds, compared with the quarter's five-year average of $46 billion, showed data from Preqin.</p>.<p>However, top private equity firms' track record of landing big-ticket merger-and-acquisition deals and steady returns for their investors hunting yields in a low interest rate environment are helping revive fundraising activity.</p>.<p>Hillhouse is also raising what would be Asia's largest US dollar-denominated fund targeting $13 billion, said separate people with knowledge of the matter.</p>.<p>The dollar fund, the firm's fifth, will comprise around $1 billion for venture investment, $2.5 billion for growth-stage companies and the rest for buyout deals, said two of the people.</p>.<p>Hillhouse declined to comment. The people declined to be identified as they were not authorised to speak to the media.</p>.<p>Hillhouse's fundraising follows US-based KKR & Co Inc , which has raised over $11 billion for its latest Asia fund. Its target is $12.5 billion, sources have said.</p>.<p>Founded in 2005 by Chinese rainmaker Zhang Lei with seed funding from a Yale University endowment, Hillhouse is known for early investments in Chinese tech giants Tencent Holdings Ltd , JD.com Inc and Baidu Inc.</p>.<p>It raised $10.6 billion two years ago for Asia's biggest private equity fund, which invests in the healthcare, consumer, technology and services sectors globally, with a focus on Asia.</p>.<p>The firm won a bid last year to buy 15 per cent of China's largest air-conditioner maker Gree Electric Appliances Inc of Zhuhai for $7.5 billion. It also scored a $6.8 billion buyout of shoemaker Bell International with peer CDH Investments in 2017.</p>.<p>Most recently, it invested in biotech firm i-Mab as well as the initial public offering of online real estate broker KE Holdings Inc.</p>.<p>Hillhouse is looking to develop its real estate capabilities and has tapped ex-Warburg Pincus LLC real estate veteran Joe Gagnon to lead the efforts, Reuters reported last month. </p>