Hillhouse’s Zhang Lei (speaking) may be combining technology and real estate with his latest fund (Source: Getty Images)
Canada’s CPP Investments (CPPIB) announced earlier this month that it had committed $300 million to Hillhouse Capital Group’s first real estate fund in the quarter ending June 30. .
The Hillhouse Real Asset Opportunities Fund (RAOF), led by Joseph Gagnon, a former Warburg Pincus executive at Warburg Pincus, now a partner in Hillhouse’s New Infrastructure division, will help the Hillhouse team raise $1.08 to support new economies in the Asia-Pacific region. Intended for investment in related real estate assets and platforms. According to public records compiled by data provider AUM13f.com, by March 31, the mixed fund will be up to his $1 billion.
Cayman Islands records show the fund was first registered on 16 June 2021 and another feeder vehicle was installed a week later. Reuters reported on the fund’s plans in March last year, but Hillhouse representatives, led by Henan-born dealmaker Zhang Lei, declined to comment on the funding when contacted by Mingtiandi.
In addition to the commingled funds, the public filings indicate potential sidecar investments or special mandates, although further information regarding these subsidiaries was not available at the time of issuance.
storage and sickbed
The first investment by Hillhouse’s RAOF fund is said to be in the logistics sector, with the vehicle also targeting life sciences assets and other investments, with a boost from tech-enabled tenants.
Joe Gagnon is currently a partner in Hillhouse’s New Infrastructure division.
During his time at Warburg Pincus, Gagnon specialized in platform investments and was involved in the founding of e-Shang, one of ESR’s predecessors, and D&J, one of the pioneers of the mainland industrial platform DNE Group. Hillhouse vehicles are also said to invest in the platform and support local entrepreneurs.
Headquartered in Singapore, the fund and its leadership team target investments in North Asia, including mainland China, Southeast Asia and the rest of the world.
Asia’s largest investor
Prior to launching its first real estate fund, Hillhouse helped GLP in its $11.6 billion privatization in 2017 and last year led a $700 million investment in JD.com’s JD Properties spinoff with Warburg Pincus. did.
Founded in 2005 by Zhang Lei with seed funding from the Yale University Endowment, Hillhouse has been active on a number of fronts, including last year’s $4.4 billion acquisition of Philips consumer electronics from its Dutch parent company.
The company reportedly had $73.3 billion in assets under management as of July 31 last year, completed its fifth flagship buyout fund of $18 billion last year, and manages Asia’s largest private equity vehicle. increase.
The company was an early investor in Tencent Holdings and one of the first backers of e-commerce giant JD.com.