Tencent ties up with Hillhouse for private equity JV

13 August 2014   Category: News, Asia, China, Global   By Hui Ching-hoo

Chinese internet giant Tencent is poised to team up with Beijing-based principal investment firm Hillhouse Capital Management to form a private equity joint venture (JV), according to a report from financial website hexun.com.

PRC media sources claim Tencent will take a 40% stake in the JV, while Hillhouse Capital Management will own the remaining 60%. The new firm will reportedly appoint Qiu Guolu, former chief investment officer of China Southern Asset Management, as managing director, and Hillhouse Capital Management founder Zhang Lei will be named as the JVs general manager.

Founded in 2005, Hillhouse Capital Management is specialised in managing alternative assets. Mr. Zhang utilised a US$30 million foundation from Yale University as the firm’s seed fund. It currently sits on assets of around $7.76 billion.

Tencent has been expanding its turf in the financial sector, having teamed up with China’s Huaxia Bank Co to offer its first fund product Licaitong via its mobile massaging app WeChat earlier this year.