Primavera Capital Group

Primavera Capital Group (Primavera; Chinese: 春華資本集團; pinyin: Chūnhuá Zīběn Jítuán) is a Chinese investment firm based in Hong Kong that invests in the private markets. 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]

Primavera Capital Group
Native name
春華資本集團
TypePrivate
IndustryInvestment Management
Founded2010 (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]
Websiteprimavera-capital.com

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]

Headquartered in Hong Kong. the firm has additional offices in Beijing, Silicon Valley and Singapore.

Background

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 dropped due to alleged ties to the Chinese Communist Party via its majority owner, Primavera Capital Group and its CEO Fred Hu.[15][16][17][18]

Notable deals

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]

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 November 1, 2016.[3][4][7][8][9][19][20]

Primavera has been acquiring private schools in the United States. In December 2017, it acquired Stratford Schools, which operates pre-k through 8th grade schools in California, for $500 million from Warburg Pincus in a leveraged buyout using $220 million in loans from Macquarie Group.[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 May 2023, Primavera received attention after it was reported it had acquired The Princeton Review and its subsidiary Tutor.com from Korean education company ST Unitas back in January 2022.[2][3]

Notable investments

References
  1. "Private Equity Chases Rich Chinese Trying to Escape Market Chaos". Bloomberg.com. 1 November 2022. Archived from the original on 2023-09-29. Retrieved 2023-06-22.
  2. Apostoaie, Ella (2023-06-04). "Who is Primavera Capital?". The Wire China. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  3. Korn, Melissa (2023-05-08). "WSJ News Exclusive | Chinese Company Now Owns Tutoring Firm Contracted by Military and Schools in U.S." Wall Street Journal. ISSN 0099-9660. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  4. "One of China's Top Tech Investors Sees Crackdown Turning Point". Bloomberg.com. 2022-06-28. Archived from the original on 2022-08-07. Retrieved 2023-06-22.
  5. "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. 2023-06-01. Archived from the original on 2022-06-05. Retrieved 2023-07-22.
  6. "Fred Hu". www.hks.harvard.edu. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  7. "There Are No Winners in Trade Wars, Says Primavera Capital Founder Fred Hu". CTECH - www.calcalistech.com. 2018-05-24. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  8. "Ant group's early investor Primavera closes fourth fund at $4 billion". The Economic Times. 2023-05-30. ISSN 0013-0389. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  9. "After China spending spree, rainmaker Hu says time to look closer to home". Reuters. 2017-07-05. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  10. "Fosun's fashion house Lanvin merges with SPAC as it eyes New York listing". South China Morning Post. 2022-03-23. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  11. Yang, Jing (2022-12-15). "Chinese-Backed Lanvin Group Makes New York Trading Debut After SPAC Merger". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  12. Hall, Casey (2022-12-15). "Lanvin Group to open stores, hunt buys after U.S. SPAC listing". Reuters. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  13. "China's Primavera Capital Opens Singapore Office, Eyes More Deals in Southeast Asia - Caixin Global". www.caixinglobal.com. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  14. "China's Primavera said to be targeting $300m for private credit fund". DealStreetAsia. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  15. Postal, Leslie (2023-09-22). "DeSantis drops Park Maitland School, other campuses from voucher programs because of China ties". Orlando Sentinel. Archived from the original on 2023-09-27. Retrieved 2023-09-29.
  16. Crowley, Kinsey (September 25, 2023). "DeSantis' latest anti-communist campaign targets Florida schools linked to Chinese firms". The Columbus Dispatch. Archived from the original on 2023-09-29. Retrieved 2023-09-29.
  17. Luscombe, Richard (2023-10-02). "DeSantis invokes China 'boogeyman' narrative amid flailing campaign". The Guardian. ISSN 0261-3077. Archived from the original on 2023-10-10. Retrieved 2023-10-12.
  18. Morris, Stephen; Kinder, Tabby (2022-07-21). "HSBC installs Communist party committee in Chinese investment bank". Financial Times. Archived from the original on 2023-10-04. Retrieved 2023-10-12. 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 (2016-09-02). "Primavera, Alibaba's Ant Financial dunk $460M into KFC owner's spinout Yum China". TechCrunch. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  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 2023-06-22. Retrieved 2023-06-22.{{cite news}}: CS1 maint: multiple names: authors list (link)
  21. "Primavera lines up US$220 million of loans for Stratford School LBO". Reuters. 2017-12-08. Archived from the original on 2023-06-22. Retrieved 2023-06-22.
  22. Walker, Ian (2021-06-07). "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 2023-06-22. Retrieved 2023-06-22.
  23. "Taiwanese battery maker ProLogium likely valued at $2-$3 bln in new funding round". Reuters. 2021-10-29. Archived from the original on 2023-06-06. Retrieved 2023-06-22.
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