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FountainVest Partners

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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]

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]

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

Background

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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, the 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

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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

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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 in Loscam, an Australian pallet producer from China Merchants.[29] In May 2024, it was reported there were talks to sell the company for $2 billion.[30]

In December 2018 an investor consortium led by Anta Sports that included FountainVest and Tencent acquired Amer Sports for $5.2 billion.[3][31] In Amer sports are included the ski brands Atomic, Salomon and the tennis racket producer Wilson.[32]

In November 2021 FountainVest struck a deal to acquire the Chinese franchises of Papa John's and Dairy Queen for $160 million.[33] An expansion from currently around 160 to 1,350 restaurants by 2040 in Southern China was agreed upon.[34] For the Chinese branch of Dairy Queen an expansion from 900 to 1500 until 2040 was planned.[35]

In April 2024, it was reported FountainVest and Unison Capital were finalizing a deal to acquire Japanese jeweler Tasaki from MBK Partners.[36]

References

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  1. ^ "FountainVest Partners (Asia)". World Economic Forum.
  2. ^ "Form ADV" (PDF). SEC. Archived from the original (PDF) on 22 June 2023.
  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. ^ "Loscam owners including CMG, Citic, considering US$2 billion-plus sale: sources". South China Morning Post. 27 May 2024. Retrieved 25 October 2024.
  31. ^ "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.
  32. ^ "China's Anta weighs the IPO of Wilson racket maker Amer Sports". South China Morning Post. 7 December 2022. Retrieved 25 June 2023.
  33. ^ Chang, Vinicy (19 November 2021). "FountainVest to Buy Papa John's Pizza China Franchisee From EQT". Bloomberg News. Retrieved 25 June 2023.
  34. ^ "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.
  35. ^ "FountainVest Partners with Dairy Queen". www.themiddlemarket.com. 10 March 2022. Retrieved 2 July 2023.
  36. ^ Du, Lisa (26 April 2024). "FountainVest, Unison Said to Near Deal for Japanese Jewelry Firm Tasaki". Bloomberg.com. Retrieved 25 October 2024.
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