Wall Street Journal – Fountainvest Raises $2.1 Billion for New China Fund

2016-09-22

Wall Street Journal
http://www.wsj.com/articles/fountainvest-raises-2-1-billion-for-new-china-fund-1474511256

By Rick Carew

HONG KONG—FountainVest Partners, led by former Goldman Sachs Group Inc. banker Frank Tang, raised $2.1 billion for its latest China-focused private equity fund, according to a person familiar with the situation.

The private equity fund will be among the largest China-focused funds and FountainVest’s third fund raised since 2008. Its previous fund was $1.35 billion, raised in 2012. The new fundraising effort came together quickly, raising money mostly from existing investors, according to the person.

Mr. Tang’s FountainVest has been a major investor in China’s media and entertainment world. For example, it invested in movie-screen company IMAX Corp. ’s China division and helped it build out its operations in China. It was also one of the investors in Chinese advertiser Focus Media, which it helped take private from the U.S. and relist on China’s domestic stock market, making multiples of its initial investment.

Mr. Tang started his career as a banker at Goldman Sachs. He later did deals for Singapore’s Temasek Holdings Pte. Ltd., making several highly profitable investments in Chinese banks for the Singaporean state-owned investor, before setting up his own firm with partners who worked with him at Temasek.