China-based Tencent Holdings has entered into a joint venture with Asia-focused hedge fund Hillhouse Capital Management to launch new public investment fund.
Under the joint venture, Tencent and Hillhouse Capital will contribute 40% and 60% each of the fund’s capital, according to China Money Network.
As part of the deal, former investment director of China Southern Fund Management, Qiu Guolu, will become the chairman of fund, while Hillhouse Capital’s founder Zhang Lei will serve as the fund’s general manager.
In March this year, Tencent has agreed to buy a 15% stake in Beijing-based e-commerce firm JD.com for US$214.7 million.
Last year, Tencent and Hillhouse have joined forces with media company MNC Media to tap into the social media market opportunities in Indonesia.