Hillhouse Investment Management is preparing to raise up to $8bn for its first new flagship funds in five years, as it looks to restart large-scale fundraising across Asia-focused private equity and growth strategies, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the firm is targeting around $7bn for an Asia buyout fund, alongside a further $1bn to $1.5bn for a growth vehicle. Hillhouse itself is expected to commit between $1bn and $2bn to the strategies.
Founder Zhang Lei and co-chief investment officer Michael Yi recently outlined the plans to investors during a webinar in March. The fundraising effort is being marketed to sovereign wealth funds in the Middle East, alongside endowments and family offices, with a first close targeted for October.
The raise marks Hillhouse’s return to major fundraising after its last vintage secured $18bn in 2021. Since then, the firm has faced headwinds including weaker Chinese equity markets and reduced allocations from North American institutional investors amid geopolitical tensions between the US and China.
Investor appetite for Asia-focused buyout strategies has also cooled, with fundraising cycles extending to an average of around 18 months in 2025, according to industry estimates. At the same time, limited partners have increasingly pushed managers to commit more of their own capital to new funds, a trend Hillhouse appears to be following.
The new vehicles are expected to focus on “new economy” companies with relatively low leverage and strong cash generation profiles, reflecting a more defensive approach to deployment in a slower regional deal environment.
Hillhouse, which operates across private equity, venture capital, hedge funds and private credit, has previously managed more than $100bn in assets at its peak. Its recent portfolio includes investments in Quest Global, AI group MiniMax, and Wuxi AppTec’s clinical research unit, alongside growing exposure in Japan, including real estate group Samty Holdings.
Performance data shared with prospective investors show mid-single-digit to low-double-digit net IRRs across prior funds, broadly in line with regional benchmarks but below top-quartile peers in some categories.
The firm has also expanded its international footprint, recently opening an office in Abu Dhabi as Gulf capital becomes an increasingly important source of funding for global private markets managers.
