Founded in October 2012, Hillhouse Capital Advisors, Ltd. (“HCA”) provides investment advice to clients organized as privately-offered pooled investment vehicles or similar structures (the “Funds”) and to certain managed accounts or similar relationships. The Funds and all such HCA-advised managed accounts are referred to herein as “clients.” HCA is a wholly-owned subsidiary of Hillhouse Capital Group Limited, which itself is a wholly-owned subsidiary of Hillhouse Capital Group Holdings Limited. Mr. Lei Zhang directly owns 100% of Hillhouse Capital Group Holdings Limited. HCA is part of the “Hillhouse Capital Group,” a multinational group of related advisory entities. To comply with local operational requirements (including the issuance of local work visas), HCA has engaged local affiliates based in Hong Kong, the People’s Republic of China (the “PRC”), and Singapore (Hillhouse Capital Management Limited, Hillhouse (Beijing) Advisory Limited, and Hillhouse Capital Management Pte. Ltd., respectively). While these local entities are not registered as investment advisers with the United States Securities and Exchange Commission (the “SEC”), because these entities are under common control with HCA and share certain personnel and resources, HCA subjects these affiliates’ personnel to all of its compliance policies and deems these affiliates’ books, records, and personnel to be within the scope of HCA’s books and records retention and production obligations. Accordingly, certain information on HCA contained in this Brochure, including information regarding personnel, is presented on an aggregate basis for HCA and these affiliates. Another HCA affiliate, Hillhouse Capital Management, Ltd. (“HCM”), which is discussed in Item 10, is registered as an investment adviser with the SEC. While HCA and HCM may, from time to time, invest in similar strategies or companies, HCA-advised clients generally focus on publicly-listed (or similarly liquid) investment opportunities, while HCM-advised clients largely focus on private (or otherwise less liquid) investment opportunities, including venture capital, private equity, private debt and buyout transactions.
Investment Philosophy
HCA’s investment philosophy is to seek long-term, risk-adjusted returns through bottom-up analysis and fundamental proprietary research. As part of HCA’s bottom-up analysis, it performs both qualitative and quantitative assessments of potential investments with a particular focus on opportunities upon which it can gain insights and discover value in an ever-changing world. HCA believes that this fundamental research persistence allows it to be a patient, long- term investor. Markets and Investment Opportunities HCA primarily invests in equity and debt securities, but may invest in a wide range of securities and other financial instruments including, without limitation: share capital; common and preferred stock (privately-placed and exchange-traded); shares of beneficial interest; partnership interests and similar financial instruments; bonds, notes, and debentures and other debt instruments (whether subordinated, convertible, or otherwise); commodities; currencies; interest rate, currency, commodity, equity, debt, and other derivative products (including, without limitation, (i) futures contracts (and options on futures contracts) relating to stock indices, currencies, other financial instruments, and all other commodities, (ii) swaps, options, warrants, caps, collars, floors, and forward rate agreements, (iii) spot and forward currency transactions, and (iv) agreements relating to or securing such transactions); equipment lease certificates; equipment trust certificates; loans; accounts and notes receivable and payable held by trade or other creditors; trade acceptances; contract and other claims; executory contracts; participations; mutual funds; money market funds; structured securities; repurchase agreements; obligations of governments and instrumentalities; commercial paper; certificates of deposit; bankers’ acceptances; trust receipts; choses in action; real estate, including fee interests, leaseholds, mortgages, or other real estate assets; and any other obligations and instruments or evidences of indebtedness of whatever kind or nature; in each case, of any person, corporation, government, or other entity whatsoever, whether or not publicly traded or readily marketable. Some investments that HCA makes for client accounts may have no readily available market. HCA invests client assets in a wide range of countries, markets and exchanges in Asia and throughout the world, including, without limitation, markets in the PRC, Hong Kong, the United States (“U.S.”), Singapore, Taiwan, Korea, Japan, Indonesia, India, Vietnam, Malaysia, Thailand, Australia, the United Kingdom, and elsewhere. Clients may also face indirect exposure to all of the instruments and investments listed above through investment in special purpose vehicles and similar entities.
Advisory Services
HCA provides portfolio advisory services and manages client accounts and Funds on both a discretionary and non-discretionary basis subject to any investment policies and restrictions established by its clients. HCA manages the Funds in accordance with the investment guidelines set forth in the offering documents for each Fund and manages other client accounts in accordance with the authority delegated to it (including any limits on that authority) under the applicable client’s investment management agreement or governing documents. HCA consults with each client on its investment objectives and tailors its services and advice to those objectives. HCA had approximately $25.318 billion of assets under management as of January 1, 2019, with approximately $2.110 billion managed on a non-discretionary basis and $23.208 billion managed on a discretionary basis. The amount of assets under management reported in this Brochure is lower than the amount of “regulatory assets under management” that HCA reports in Part 1, Item 5 of its Form ADV because Item 5 requires an adviser to report assets under management inclusive of any uncalled commitments and without deducting any outstanding indebtedness or other accrued but unpaid liabilities. To prevent the appearance of an overstatement of HCA’s assets under management, HCA has calculated assets under management in this Brochure exclusive of uncalled commitments and taking into account certain unpaid liabilities and outstanding indebtedness.
Fund Structures
While there are no express limits on the kinds of Funds and other clients that HCA may advise, nor on the composition of their portfolios (except on a client-specific basis as disclosed in “Advisory Services” above and elsewhere in this Brochure), HCA’s client portfolios generally focus on publicly-listed (or similarly liquid) investment opportunities. A smaller portion of the Funds or their portfolios may also hold investments in illiquid or less-liquid investments. Additionally, certain of HCA’s Funds may primarily invest in securities and other investment instruments that are traded on exchanges within the PRC (such investments, “A Share Investments”). The Funds are often organized into master-feeder structures. A master-feeder structure is commonly used to accumulate capital raised from U.S. taxable, U.S. tax-exempt, and non-U.S. investors into one central trading vehicle – a master fund – in order to enhance the critical mass of tradable assets, improve economies of scale under which the fund arrangements operate and enhance operational efficiencies, thereby reducing costs. HCA commonly serves as, or controls, or is under common control, with an entity that serves as, the general partner of those Funds organized as partnerships. The general partner of any Fund may also act as the general partner of other Funds or investment vehicles.
HCA or its affiliates may also, from time to time, form, sponsor, manage, arrange, offer or advise investment vehicles or accounts in connection with a particular strategy or theme, or may establish, sponsor or advise, on a transaction-by-transaction basis, an investment vehicle or account through which certain persons may invest alongside or independently of one or more clients (each such vehicle or account, a “Co-Investment Arrangement”). Co-Investment Arrangements may participate in individual investments or a series of related or unrelated investments alongside one or more other clients of HCA and its affiliates. Co-Investment Arrangements may also make investments independently of (and not alongside) other clients of HCA and its affiliates. In addition, certain Funds (and other HCA clients) may from time to time co-invest with each other. HCA’s fee and compensation practices for Co-Investment Arrangements are subject to a case-by-case agreement with the applicable investor. The allocation of co-investment opportunities can be both discretionary or non-discretionary, and HCA takes into account various facts and circumstances deemed relevant for determining allocations relating to co-investment opportunities and establishing co-investment structures. Such factors are likely to include, among others, the strategic value that the potential co-investor may bring to the investment or transaction, whether a potential co-investor has expressed interest in co-investment opportunities, the market or opportunity size, the amount of capital needed for the potential investment, the number of investors that can practically participate in the transaction, HCA’s assessment of the potential co-investor’s ability to invest in an amount and within the timeframe required by the investment, regulatory or tax considerations in the investment, the portfolio company’s requirements or preferences, and such other factors that HCA may deem relevant. Please see “Investment Allocations” below for additional information relating to investment allocations.
A Share Managed Account Clients
Within its broader offering of advisory services, HCA provides advisory services with respect to A Share Investments. A Share Investments can be made by persons licensed as a Qualified Foreign Institutional Investor (“QFII”) by the China Securities Regulatory Commission (the “CSRC”) (such investments, “QFII Investments”) as well as through the Shanghai – Hong Kong Stock Connect and the Shenzhen – Hong Kong Stock Connect programs (collectively, the “Stock Connect” programs). HCA advises clients holding QFII licenses in their trading of QFII Investments and clients that invest in A Share Investments through the Stock Connect programs. Client Eligibility and Focus. HCA has a select and limited number of managed account clients that are eligible for its A Share Investment program (“A Share Managed Account Clients”) and, thus, HCA consults with each A Share Managed Account Client on its investment objectives and then tailors HCA’s services and advice to those objectives. HCA’s role is to advise its A Share Managed Account Clients in the selection of A Share Investments most suited to their investment objectives, and then to manage, monitor, and provide additional investment advice as required in connection with the applicable advisory relationship. A Share Managed Account Clients may be managed on a discretionary or non-discretionary basis.
Investment Allocations and Related Conflicts
HCA faces a number of conflicts in allocating investment opportunities among its various clients, including clients with similar or identical trading and investment programs and clients that have separate and distinct, but overlapping, trading and investment programs. HCA may also face additional allocation conflicts in connection with certain proprietary vehicles owned or controlled by HCA and its affiliates. These conflicts are heightened by the fact that the various Funds and other clients sponsored, advised, or managed by HCA and its various affiliates have different management and incentive fee structures. Not all of the opportunities that may be suitable for a given client will be presented to such client. In some circumstances, HCA may allocate the same or similar trade or investment opportunities among clients and proprietary vehicles. In other circumstances, HCA may allocate investment opportunities to certain clients or to proprietary vehicles and not to other clients. Where investment opportunities fall within the investment programs of more than one client, HCA’s policy is to allocate investment opportunities among eligible clients fairly and equitably, to the extent possible, over a period of time taking into account certain considerations, including (i) any applicable investment parameters, (ii) contractual obligations, (iii) legal, tax, regulatory and other considerations, and (iv) internal allocation policies. In an effort to ensure fairness in the allocation of investment opportunities among HCA’s clients, HCA has adopted allocation policies and procedures that take into account various factors, including: the suitability of the investment for each of HCA’s clients; HCA’s clients’ investment objectives and strategies; lifespans and closing dates of HCA’s Funds or client mandates; existing portfolio composition and existing holdings; net asset value; liquidity and reserve levels; risk profile; actual or projected future capacity for investment and the timing thereof; eligibility; the portfolio company’s requirements or preferences; targeted rate of return; the stage of development of the prospective portfolio company or other investments; legal, tax, contractual, regulatory or other considerations; cash levels and cash availability; anticipated holding period and remaining investment periods; market exposure; market or opportunity size; currency exposure; and industry sector exposure. To the extent that all or a portion of an investment opportunity is deemed inappropriate for HCA’s clients, such as but not limited to investments in pooled investment vehicles or similar structures managed by third parties that assess management fees or performance fees/allocations, HCA, its employees and its affiliates may participate in such opportunities as described in HCA’s policies and procedures. please register to get more info

Open Brochure from SEC website
Pooled Investment Vehicles $36,186,041,831
Discretionary $40,096,022,238
Non-Discretionary $2,907,665,307
Registered Web Sites

Related news

Udaan raises $280 mn from new and existing investors

Udaan, the fastest startup to achieve unicorn status in India, on Wednesday said it has raised $280 million (Rs 2,045 crore).

Philips Said to Shortlist Asian Suitors for $4 Billion Unit

Royal Philips NV has shortlisted a clutch of Asian suitors in the bidding for its home appliance unit, which could fetch at least 3 billion euros ($3.7 billion), people with knowledge of the matter said.

Udaan in talks to raise $150-200 million from existing investors: Report

This comes as Udaan managed to make a strong recovery from the impact of the COVID-19 pandemic which had affected almost 60 percent of its business during the lockdown.

$2.94 Billion in Sales Expected for Pinduoduo Inc. (NASDAQ:PDD) This Quarter

Brokerages expect Pinduoduo Inc. (NASDAQ:PDD) to report $2.94 billion in sales for the current quarter, according to Zacks Investment Research. Three analysts have provided estimates for Pinduoduo’s earnings,

Pinduoduo (NASDAQ:PDD) Reaches New 52-Week High at $185.33

Hillhouse Capital Advisors LTD. raised its holdings in shares of Pinduoduo ... 20.85% of the stock is currently owned by hedge funds and other institutional investors. About Pinduoduo (NASDAQ:PDD) Pinduoduo Inc, through its subsidiaries, operates an ...

Asian Suitors Said to Advance in $4 Billion Philips Unit Bidding

Royal Philips NV has shortlisted a clutch of Asian suitors in the bidding for its home appliance unit, which could fetch at least 3 billion euros ($3.7 billion), people with knowledge of the matter said.

Who Is Funding Robotics?

With the use of Crunchbase database, this article tries to analyse who is investing across different stages in robotics.

Cred raises Series C funding; buys back ESOPs worth $1.2 mn

Dreamplug Technologies, which owns and operates credit card payment platform Cred, has raised $81 million (Rs 591 crore) in a

Loch Lomond sets sights on China after Asian buyout

Colin Matthews has increased his own minority stake in Loch Lomond after leading a deal which has seen Hillhouse Capital Management ... as] United States pension funds and not for profit ...

ImmVira Announces Series C Financing with Leading Specialist Investors

Lead investor for Series C was Greater Bay Area Homeland Development Fund ("GBA Fund"), and Octagon ... the venture capital arm of Hillhouse Capital, who invested in Series A Plus and Series ...
No recent news were found.