Wikipedia

FountainVest Partners

FountainVest Partners (FountainVest; Chinese: 方源资本; pinyin: Fāngyuán Zīběn) is a Chinese investment firm based in Hong Kong that invests in the private markets. The firm focuses on China's media and entertainment, sports and consumer-related sectors although it has expanded into other areas in recent years.[3][4][5]

FountainVest Partners
Native name
方源资本
Company typePrivate
IndustryInvestment Management
FoundedDecember 2007; 16 years ago (2007-12)
Founders
  • Frank Tang
  • George Chuang
  • Terry Hu
  • Chenning Zhao
HeadquartersTwo IFC, Central, Hong Kong
Key people
Frank Tang (Chairman and CEO)
ProductsPrivate equity
Growth equity
Venture capital
AUMUS$11 billion (2022)[1]
Websitefountainvest.com
Footnotes / references
[2]

Headquartered in Hong Kong, the firm has additional offices in Beijing, Frankfurt, Shanghai and Singapore.

Background edit

In December 2007, Frank Tang and several other senior executives at Temasek Holdings founded FountainVest.[4] Major investors of the firm at the time were Temasek Holdings, CPP Investment Board and Ontario Teachers’ Pension Plan.[5] The firm raised almost $1 billion for its first China-focused private equity fund[5] despite the timing of the 2007–2008 financial crisis.[6] For many investors, FountainVest was the first China private equity fund they committed money to.[3][4][7][8][9][10] By 2022, the company closed its fourth fund, that one being of $2.9 Billion.[11]

Investment strategy edit

FountainVest's investment strategy is based around three core themes: the rising middle class, urbanisation and sustainable development. The typical deal size is $50 million - $150 million enterprise value on entry as it has already passed the early stage company risk while still having potential to become a billion dollar company.[4][5][8][12]

Notable deals edit

In November 2009, FountainVest, Sequoia Capital and CITIC Capital acquired a stake worth $180 million in Sina Corporation[13] which runs Weibo, China's most popular microblogger.[10] The purpose was to strengthen Sina management's hold on the company and allow it to finance future acquisitions.[4][10][13]

In 2012, an investor consortium including FountainVest and The Carlyle Group took Focus Media private via a $3.7 billion leveraged buyout deal.[3] At the time it was the largest leveraged buyout deal in China.[8][14][15] In 2015, FountainVest held a stake of just below the 20 per cent of Focus Media and CITIC about 17.5 percent.[16] Focus Media and FountainVest partners eventually set up the joint venture Focus Media FountainVest Sports worth $400 Million aimed to invest in sports.[16] The consortium later relisted Focus Media on the Shenzhen Stock Exchange via a reverse merger in 2015 in a deal worth $7.4 billion. Finally in July 2018, the consortium exited Focus Media after they sold their stake in Focus Media to the Alibaba Group for $1.2 billion.[17][18]

In January 2014, Fountainvest joined an investor consortium to privatize Nasdaq-listed company, Shanda Games for $1.9 billion. However, in September 2014, it pulled out of the deal.[19][20]

In August 2014, Fountainvest and CPP Investment Board acquired Key Safety Systems for $800 million.[21][22] In February 2016, Fountainvest and its partners sold Key Safety Systems to Ningbo Joyson Electronic Corporation for $920 million.[23]

In June 2016, Endeavor formed a joint venture in China with FountainVest, Sequoia Capital and Tencent. In April 2022 Endeavor acquired the remaining stake of the joint venture for $158 million.[24][25]

By September 2017, FountainVest acquired the German Bosch Mahle Turbo Systems (BMTS), a joint venture of Bosch and Mahle founded in 2008 that produces turbochargers.[26] The company had 1300 employees at the time.[26][27] In April 2021, FountainVest led a consortium, which invested $220 million in the self driving truck company Plus AI.[28]

In 2018, the company teamed up with CITIC and acquired a stake of 50 per cent of Loscam, an Australian pallet producer from China Merchants.[29]

In December 2018 an investor consortium led by Anta Sports that included FountainVest and Tencent acquired Amer Sports for $5.2 billion.[3][30] In Amer sports are included the ski brands Atomic, Salomon and the tennis racket producer Wilson.[31]

In November 2021 FountainVest struck a deal to acquire the Chinese franchises of Papa John's and Dairy Queen for $160 million.[32] An expansion from currently around 160 to 1,350 restaurants by 2040 in Southern China was agreed upon.[33] For the Chinese branch of Dairy Queen an expansion from 900 to 1500 until 2040 was planned.[34]

References edit

  1. ^ "FountainVest Partners (Asia)". World Economic Forum.
  2. ^ "Form ADV" (PDF). SEC.
  3. ^ a b c d Wu, Kane (18 December 2020). "China's FountainVest reaches first-close in new private equity fund - source". Reuters. Retrieved 22 June 2023.
  4. ^ a b c d e "Picking China's next winners". South China Morning Post. 11 June 2011. Retrieved 22 June 2023.
  5. ^ a b c d Chen, George (24 March 2009). "FountainVest fund eyes China consumers". Reuters. Retrieved 22 June 2023.
  6. ^ Chen, George (13 November 2008). "FountainVest raises $1 bln China fund, Temasek helps". Reuters. Retrieved 22 June 2023.
  7. ^ Anand, Sameera (14 November 2008). "FountainVest opens shop in China". FinanceAsia. Retrieved 22 June 2023.
  8. ^ a b c Wilson, Drew (19 September 2013). "Privately Speaking: Frank Tang of FountainVest Partners". Private Equity International. Retrieved 22 June 2023.
  9. ^ Gopalan, Nisha; Sheng, Ellen (14 November 2008). "FountainVest launches China fund". The Wall Street Journal. ISSN 0099-9660. Retrieved 22 June 2023.
  10. ^ a b c "Fast US$1b raised for China P.E. fund". South China Morning Post. 26 July 2012. Retrieved 22 June 2023.
  11. ^ Burroughs, Tim (27 June 2022). "Fund focus: Re-ups underpin FountainVest's Fund IV close". Asean Venture Capital Journal. Retrieved 1 July 2023.
  12. ^ "FountainVest Introduction". SDCERA. 17 May 2012.
  13. ^ a b "UPDATE 1-Three PE firms back Sina $180 mln mgmt investment". Reuters. 27 November 2009. Retrieved 22 June 2023.
  14. ^ "Focus Media accepts US$3.7b buyout offer". South China Morning Post. 21 December 2012. Retrieved 22 June 2023.
  15. ^ Noble, Josh (20 December 2012). "Focus Media agrees $3.7bn buyout deal". www.ft.com. Retrieved 22 June 2023.
  16. ^ a b Dongmei, Li (25 April 2016). "FountainVest Teams Up With Focus Media To Launch $400M Sports Fund". China Money Network. Retrieved 1 July 2023.
  17. ^ "CITIC Capital, FountainVest and Carlyle Exit Focus Media to Alibaba Group (Asia) – GPCA". 27 July 2018. Retrieved 22 June 2023.
  18. ^ Gough, Neil (3 June 2015). "Focus Media Reaches $7.4 Billion Deal to List in Shenzhen". The New York Times. ISSN 0362-4331. Retrieved 22 June 2023.
  19. ^ Leung, Danny (9 January 2017). "Shanda Games moves closer to backdoor listing". FinanceAsia. Retrieved 2 July 2023.
  20. ^ Cheung, Sonja; Ho, Prudence (3 September 2014). "Shanda Games Take-Private Bid Consortium Loses Carlyle, Other Backers". Wall Street Journal. ISSN 0099-9660. Retrieved 2 July 2023.
  21. ^ "Key Safety Systems Said Near $800 Million Sale to FountainVest". Bloomberg.com. 8 April 2014. Retrieved 22 June 2023.
  22. ^ Stoll, John (29 August 2014). "FountainVest acquires control of U.S. auto supplier Key Safety Systems". Wall Street Journal. ISSN 0099-9660. Retrieved 22 June 2023.
  23. ^ Yue, Jillian (4 February 2016). "FountainVest To Sell Key Safety Systems To Ningbo Joyson In $920M Deal". China Money Network. Retrieved 22 June 2023.
  24. ^ Sun, Rebecca (27 October 2016). "WME-IMG Taps NBA Exec as CEO of China Subsidiary". The Hollywood Reporter. Retrieved 22 June 2023.
  25. ^ Frater, Patrick (28 April 2022). "Endeavor Takes Outright Control of On Location and Endeavor China". Variety. Retrieved 22 June 2023.
  26. ^ a b "Bosch Mahle Turbo Sold". Diesel Progress. 12 September 2017. Retrieved 25 June 2023.
  27. ^ "Turboladerwerk geht an Hong-Kong-Investor". kaernten.orf.at (in German). 7 September 2017. Retrieved 2 July 2023.
  28. ^ Baker, Annie (19 April 2021). "Self-Driving Truck Tech Company Plus Raises $220 Million". Pulse 2.0. Retrieved 2 July 2023.
  29. ^ MacDonald, Anthony; Thompson, Sarah; Sood, Kanika (31 January 2022). "Pallets for PE: Loscam Australia back on the block". Australian Financial Reviewʼ. Retrieved 1 July 2023.
  30. ^ "Finland's Amer Sports close to signing $5.2 billion takeover deal by Anta-led consortium: source". Reuters. 6 December 2018. Retrieved 22 June 2023.
  31. ^ "China's Anta weighs the IPO of Wilson racket maker Amer Sports". South China Morning Post. 7 December 2022. Retrieved 25 June 2023.
  32. ^ Chang, Vinicy (19 November 2021). "FountainVest to Buy Papa John's Pizza China Franchisee From EQT". Bloomberg News. Retrieved 25 June 2023.
  33. ^ "Papa Johns Announces Historic Development Deal With FountainVest Partners to Open Over 1,350 New Stores in China". www.businesswire.com. 7 January 2022. Retrieved 25 June 2023.
  34. ^ "FountainVest Partners with Dairy Queen". www.themiddlemarket.com. 10 March 2022. Retrieved 2 July 2023.

External links edit

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