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Primavera Capital Group

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Primavera Capital Group
Native name
春華資本集團
Company typePrivate
IndustryInvestment Management
Founded2010; 14 years ago (2010)
Founders
  • Fred Hu
  • Kenneth Wong
  • William Wong
  • Haitao Zhai
HeadquartersThe Landmark, Hong Kong
ProductsPrivate equity
Growth equity
Venture capital
Private credit
AUMUS$20 billion (November 2022)[1]
Websitewww.primavera-capital.com Edit this at Wikidata

Primavera Capital Group (Primavera; Chinese: 春華資本集團; pinyin: Chūnhuá Zīběn Jítuán) is a Chinese investment firm with offices in Hong Kong, Beijing, Silicon Valley and Singapore. It is considered one of China's leading investment firms with notable investments in companies such as Alibaba, Ant Group, ByteDance, XPeng, Yum China and The Princeton Review.[2][3][4]

In 2023, Private Equity International, ranked Primavera as the fifth largest private equity firm in Asia based on total fundraising over the most recent five-year period.[5]

Background

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Fred Hu was previously a partner and the chairman of Greater China at Goldman Sachs. In 2010, Hu and several other managing directors at Goldman Sachs founded Primavera.[4][6][7][8][9]

In January 2021, Primavera held an initial public offering (IPO) of a SPAC, Primavera Capital Acquisition Corporation on the New York Stock Exchange (NYSE) raising $360 Million. In December 2022, Lanvin Group merged with Primavera Capital Acquisition Corporation to become a listed company on the NYSE raising $150 million.[10][11][12]

In December 2021, Primavera opened an office in Singapore.[13]

In 2022, Primavera launched its private credit strategy with its debut private credit fund raising $300 million.[14]

The firm primarily invests in China but in recent years has diversified into Southeast Asia and North America.[8]

Institutional investors of the firm include AIA Group, Bank of China, MetLife, Pennsylvania State Employees' Retirement System, State Street Corporation, Varma Mutual Pension Insurance Company and TSMC.[9]

In September 2023, Florida governor Ron DeSantis announced that voucher programs for four private schools owned by Spring Education Group would be ended due to alleged ties to the Chinese Communist Party (CCP) via its majority owner, Primavera Capital Group and its CEO Fred Hu.[15][16][17][18] Fred Hu denied any membership in the CCP.[18]

Notable deals

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Primavera was an anchor pre-IPO investor of Alibaba. It has also invested in multiple subsidiaries of it including Alipay, Ant Group and Cainiao.[2][3][4][7][9]

In September 2016, Primavera and Ant Group acquired a $460 million stake in Yum China before it was spun off from Yum! Brands as an independent company and listed on the NYSE on 1 November 2016.[3][4][7][8][9][19][20]

In December 2017, Primavera acquired California-based Stratford Schools for $500 million in a leveraged buyout from Warburg Pincus. [21]

In June 2021, Reckitt announced it would be selling its infant-formula and child-nutrition business in China to Primavera for $1.3 billion.[22]

In October 2021, Primavera announced a strategic investment in Envision Energy.[23]

In November 2021, Primavera joined as a new investor for GoTo.[24]

In January 2022, Primavera acquired The Princeton Review and its subsidiary Tutor.com from ST Unitas, gaining attention in May 2023.[2][3]

Notable investments

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References

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  1. ^ "Private Equity Chases Rich Chinese Trying to Escape Market Chaos". Bloomberg.com. 1 November 2022. Archived from the original on 29 September 2023. Retrieved 22 June 2023.
  2. ^ a b c d e f Apostoaie, Ella (4 June 2023). "Who is Primavera Capital?". The Wire China. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  3. ^ a b c d e f g h i j k Korn, Melissa (8 May 2023). "Chinese Company Now Owns Tutoring Firm Contracted by Military and Schools in U.S.". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  4. ^ a b c d e f g "One of China's Top Tech Investors Sees Crackdown Turning Point". Bloomberg News. 28 June 2022. Archived from the original on 7 August 2022. Retrieved 22 June 2023.
  5. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. 1 June 2023. Archived from the original on 5 June 2022. Retrieved 22 July 2023.
  6. ^ "Fred Hu". www.hks.harvard.edu. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  7. ^ a b c d e "There Are No Winners in Trade Wars, Says Primavera Capital Founder Fred Hu". CTECH - www.calcalistech.com. 24 May 2018. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  8. ^ a b c d e f "Ant group's early investor Primavera closes fourth fund at $4 billion". The Economic Times. 30 May 2023. ISSN 0013-0389. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  9. ^ a b c d e f g "After China spending spree, rainmaker Hu says time to look closer to home". Reuters. 5 July 2017. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  10. ^ a b "Fosun's fashion house Lanvin merges with SPAC as it eyes New York listing". South China Morning Post. 23 March 2022. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  11. ^ a b Yang, Jing (15 December 2022). "Chinese-Backed Lanvin Group Makes New York Trading Debut After SPAC Merger". Wall Street Journal. ISSN 0099-9660. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  12. ^ a b Hall, Casey (15 December 2022). "Lanvin Group to open stores, hunt buys after U.S. SPAC listing". Reuters. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  13. ^ "China's Primavera Capital Opens Singapore Office, Eyes More Deals in Southeast Asia - Caixin Global". www.caixinglobal.com. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  14. ^ "China's Primavera said to be targeting $300m for private credit fund". DealStreetAsia. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  15. ^ Postal, Leslie (22 September 2023). "DeSantis drops Park Maitland School, other campuses from voucher programs because of China ties". Orlando Sentinel. Archived from the original on 27 September 2023. Retrieved 29 September 2023.
  16. ^ Crowley, Kinsey (25 September 2023). "DeSantis' latest anti-communist campaign targets Florida schools linked to Chinese firms". The Columbus Dispatch. Archived from the original on 29 September 2023. Retrieved 29 September 2023.
  17. ^ Luscombe, Richard (2 October 2023). "DeSantis invokes China 'boogeyman' narrative amid flailing campaign". The Guardian. ISSN 0261-3077. Archived from the original on 10 October 2023. Retrieved 12 October 2023.
  18. ^ a b Morris, Stephen; Kinder, Tabby (21 July 2022). "HSBC installs Communist party committee in Chinese investment bank". Financial Times. Archived from the original on 8 July 2024. Retrieved 12 October 2023. Goldman Sachs does not have a CCP committee but has employed senior party members, including Fred Hu, who was chair of its Greater China business.
  19. ^ Lunden, Ingrid (2 September 2016). "Primavera, Alibaba's Ant Financial dunk $460M into KFC owner's spinout Yum China". TechCrunch. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  20. ^ Carew, David Benoit, Kane Wu and Rick (2 September 2016). "Yum Brands Sells $460 Million Slice of China Business to Private-Equity Investors". Wall Street Journal. Archived from the original on 22 June 2023. Retrieved 22 June 2023.{{cite news}}: CS1 maint: multiple names: authors list (link)
  21. ^ "Primavera lines up US$220 million of loans for Stratford School LBO". Reuters. 8 December 2017. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  22. ^ Walker, Ian (7 June 2021). "Reckitt Benckiser Sells Chinese Infant-Formula and Child-Nutrition Business for $1.3B Net". Wall Street Journal. ISSN 0099-9660. Archived from the original on 22 June 2023. Retrieved 22 June 2023.
  23. ^ a b Su, Liya (23 October 2021). "China's Envision subsidiaries raise $600m in green push". Nikkei Asia. Archived from the original on 3 January 2024. Retrieved 3 January 2024.
  24. ^ Burgos, Jonathan (11 November 2021). "GoTo Raises $1.3 Billion As Indonesian Ride-Hailing And Payments Giant Prepares For IPO". Forbes. Archived from the original on 3 January 2024. Retrieved 3 January 2024.
  25. ^ "Chinese AI firm 4Paradigm pockets $700m led by Boyu, Primavera, Hopu". DealStreetAsia. 23 January 2021.
  26. ^ "Taiwanese battery maker ProLogium likely valued at $2-$3 bln in new funding round". Reuters. 29 October 2021. Archived from the original on 6 June 2023. Retrieved 22 June 2023.
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