Founded in June 2005, Hillhouse Capital Management, Ltd. (“HCM”) provides investment advice to clients organized as privately-offered pooled investment vehicles or similar structures (the “Funds”) and from time to time may also advise managed accounts or similar relationships. The Funds and all such HCA-advised managed accounts are referred to herein as “clients.” HCM 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. HCM 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), HCM 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 HCM and share certain personnel and resources, HCM subjects these affiliates’ personnel to all of its compliance policies and deems these affiliates’ books, records, and personnel to be within the scope of HCM’s books and records retention and production obligations. Accordingly, certain information on HCM contained in this Brochure, including information regarding personnel, is presented on an aggregate basis for HCM and these affiliates. Another HCM affiliate, Hillhouse Capital Advisors, Ltd. (“HCA”), 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
HCM’s investment philosophy is to seek long-term, risk-adjusted returns through bottom-up analysis and fundamental proprietary research. As part of HCM’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. HCM believes that this fundamental research persistence allows it to be a patient, long- term investor. Markets and Investment Opportunities HCM primarily invests in equity and debt securities of private companies, 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, 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 HCM makes for client accounts may have no readily available market. HCM 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
HCM manages the Funds and any client accounts on a discretionary basis, subject to any investment policies and restrictions established by its clients. HCM may in the future provide advisory services on a non-discretionary basis. HCM manages the Funds and any other managed client accounts 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. HCM consults with each client on its investment objectives and tailors its services and advice to those objectives. HCM had approximately $16.237 billion of assets under management as of January 1, 2019, all of which is 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 HCM 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 HCM’s assets under management, HCM 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 HCM does not limit the kinds of Funds and other clients that it may advise or the composition of its clients’ portfolios, HCM’s client portfolios generally focus on investing in illiquid or less-liquid investments, although certain Funds may invest in exchange-traded or more liquid instruments (either as their primary focus or as portions of their portfolios). 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 vehicle – a master fund – in order to enhance the critical mass of investable assets, improve economies of scale under which the fund arrangements operate and enhance operational efficiencies, thereby reducing costs. HCM 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.
HCM 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 HCM and its affiliates. Co-Investment Arrangements may also make investments independently of (and not alongside) other clients of HCM and its affiliates. In addition, certain Funds (and other HCM clients) may from time to time co-invest with each other. HCM’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 HCM 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, HCM’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 HCM may deem relevant. Please see “Investment Allocations” below for additional information relating to investment allocations.
Investment Allocations and Related Conflicts
HCM faces a number of conflicts in allocating investment opportunities among its various clients, including clients with similar or identical investment programs and clients that have separate and distinct, but overlapping, investment programs. HCM may also face additional allocation conflicts in connection with certain proprietary vehicles owned or controlled by HCM and its affiliates. These conflicts are heightened by the fact that the various Funds and other clients sponsored, advised, or managed by HCM 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, HCM may allocate the same or similar trade or investment opportunities among clients and proprietary vehicles. In other circumstances, HCM 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, HCM’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 HCM’s clients. HCM has adopted allocation policies and procedures that take into account various factors, including: the suitability of the investment for each of HCM’s clients; HCM’s clients’ investment objectives and strategies; lifespans and closing dates of HCM’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 HCM’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, HCM, its employees and its affiliates may participate in such opportunities as described in HCM’s policies and procedures. please register to get more info

Open Brochure from SEC website
Pooled Investment Vehicles $35,133,645,601
Discretionary $35,133,645,601
Non-Discretionary $
Registered Web Sites

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