Private equity firm backed by Bloomberg backed Hidden Hill raises 465 million

Hidden Hill Capital, a private equity firm backed by GLP Pte, is a private equity firm backed by Bloomberg. There are 465 million dollars raised for a fund targeting infrastructure for a generation of Chinese companies like Shein that are turning outward for growth.

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The Hidden Hill Foundation Fund has started with shares in six companies, including J&T Express Co. and JD.com Inc. unit JD Logistics Inc., which it previously invested in. NewQuest Capital Partners, owned by alternative asset manager TPG Inc., is the fund's lead investor alongside investors from North America, Asia and Europe, Hidden Hill said in a statement Friday.

Hidden Hill believes that Chinese firms will look abroad for growth. It wants to invest in the ecosystem that will support the future global giants, from technology services to the raw logistical support they need to move goods around the world.

China's tech sector is accelerating its international push after grappling with a double-whammy of regulatory crackdowns and economic malaise at home. There are a new crop of upstarts like Shein, which leverages China's fast and cheap labor to sell clothing to US customers.

Hidden Hill wants to have a slice of that action at a time when the world is fretting over the fracture of global supply chains, because of the portfolio firms that provide technology and platforms for such China-based but international businesses.

In an interview, Higashi Michihiro, GLP's China chief strategy officer and Hidden Hill founding partner, said, "We see the opportunity where, with China at its centre, Asia will develop a unified supply chain to serve the global market. Asia will have its own UPS in the future. Hidden Hill, which was founded in 2018 with offices in Shanghai and Hong Kong, manages over $3.6 billion of assets across five yuan-denominated funds and two US dollar funds, focusing on supply chain digitization and renewable energy. It has made bets on the logistics arms of China Eastern Airlines Corp. and China Southern Airlines Co. as well as startups like freight software developer G 7 and sorting robots maker Libiao Robotics. Its main backer, GLP, has about $115 billion of assets under management, it said in a statement.

One of its recent investments is in Jet Commerce, which provides consulting, marketing and logistics services for brands and ecommerce platforms like TikTok and Sea Ltd. s Shopee. In August, the Hangzhou startup said it raised $60 million from investors including Hidden Hill and ByteDance Ltd. - backed Jinqiu Capital, without disclosing its valuation. Another Hidden Hill investor, the ZongTeng Group, is a key logistics partner to ByteDance and Shein.

Venture capital investments in China have fallen sharply this year, as investors sour on money-losing tech startups and publicly traded stocks. Growing tensions between the US and China has spurred investors to look at regional clusters like Southeast Asia. China-focused private capital fundraising has fallen by 81% to $21.5 billion so far this year, down from $115.9 billion in 2021, according to data tracker Preqin.

Richard Dong, another founding partner at Hidden Hill, said that they always have an exit plan in mind for their investors. The point of bringing Chinese firms overseas is not only about giving them a new revenue stream, but it is also about giving our LPs another window to exit under the current macro environment.