FountainVest swiftly closes $2.1b China fund

Frank Tang’s private equity firm handily gathered capital despite the gloomier outlook for returns and increased competition for LPs’ money.

FountainVest Partners said on Thursday it had gathered $2.1 billion to back the winners in industry consolidation across China.

Led by Frank Tang, a former Goldman Sachs banker and head of China investments at Temasek, FountainVest managed to swiftly win commitments from its existing and some new investors who bought into his plan for making money during the downturn.

“We believe that industry consolidations will intensify, mergers and acquisitions will create national leaders,” said Tang in a statement which focuses on the media, healthcare and consumer sectors.

The very swift capital drive happened against a tougher environment for Chinese private equity this...

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