Abu Dhabi Investment Authority, or ADIA, and private equity firm Coller EQT are in talks to back a roughly US$1 billion continuation vehicle arranged by Primavera Capital, according to unnamed sources.

Primavera, a China-focused investment firm based in Hong Kong, plans to transfer stakes in ByteDance and Ant Group from Fund III into the new vehicle at about a 30% discount to their combined US$1.5 billion net asset value.

Depending on how investors allocate that discount, ByteDance’s implied valuation would be US$400 billion to US$450 billion.

ADIA is considering an investment of US$400 million to US$600 million. Coller EQT could invest US$100 million to US$200 million.

The vehicle’s final size has not been set, and the process could still change.

The implied ByteDance valuation is below the US$550 billion valuation tied to a proposed share sale by General Atlantic in February.

Continuation funds let private equity firms hold investments for longer while giving existing investors a way to exit.

🔗 Source: Bloomberg

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