private industry hedge fund private equity venture capital founded 2005 founder lei zhang website www.hillhousecap.com hillhouse capital group hillhouse is an investment management firm founded by zhang lei in 2005 with us 20 million 1 in seed capital from the yale endowment . 2 hillhouse manages over us 20 billion as of january 2016 . 3 and is known for its avoidance of publicity . 4 5 hillhouse manages capital for institutional clients such as university endowments foundations sovereign wealth funds pension funds and family offices . hillhouse is a long term fundamental research driven equity investor . hillhouse focuses on the consumer tmt industrials and healthcare sectors and invests in companies across all equity stages . 6 hillhouse has over 30 investment professionals across its offices in beijing hong kong and singapore . it invests globally with a particular focus on asia . contents 1 history 2 performance 3 notable investments 4 joint ventures 5 investment philosophy 6 notable investors 7 references 8 external links history edit zhang lei founded hillhouse capital group in june 2005 . 7 the company is named after an avenue in new haven one block from where the yale investment office was previously located . 8 zhang used an initial 20 million which he received from yale through david swensen yale s chief investment officer to begin hillhouse . an additional 10 million soon followed . 1 according to the financial times zhang built hillhouse by being one of the first investment firms to back mainland china s burgeoning internet sector including investing in tencent holdings ltd. which is one of china s most valuable internet companies today . hillhouse is also one of the first firms to invest in jd.com the e commerce giant . 1 performance edit hillhouse has achieved an investment record of up to 52 % annualized since inception until 2012 even in spite of a 37 % drop in 2008 making hillhouse among the most profitable funds of its size in the world and the leading fund in asia 9 4 10 in 2014 returns had reportedly dropped to over 40 % . 11 owing to its low profile but high performance founder zhang lei and hillhouse have been likened to stephen mandel and lone pine capital . 4 notable investments edit tencent holdings ltd some of the original 20 million provided from yale was invested in tencent holidings in 2005 . it was hillhouse s earliest investment and one of their most profitable . 5 jd.com hillhouse was also an early investor in jd.com . at the time of the listing of jd.com on nasdaq in may 2014 the company was valued at 26 billion . hillhouse s original 255 million investment was at the time of the ipo valued at 3.9 billion . 12 blue moon hillhouse invested in blue moon a liquid detergent maker in 2010 as its only outside institutional investor . in 2013 blue moon was ranked 1 in china brand power index published by ministry of industry and information technology . the market share of its liquid detergent is ranked 1 in china for the past five consecutive years . 13 joint ventures edit hillhouse established an exclusive joint venture focused on china with the us healthcare provider mayo clinic . hillhouse will work with the mayo organization to expand its influence in china . hillhouse and mayo celebrated the establishment of this joint venture in january 2015 with a healthcare conference in beijing where healthcare industry ceos regulators and academics participated in a discussion about the future of healthcare in china . 14 investment philosophy edit henny sender discussed zhang s investment philosophy in an article published in the financial times . 1 according to sender zhang sees himself as the product of both east and west . hillhouse does deep and fundamental research on industries and business models and applies the value investing philosophy in local contexts while investing in different geographies . according to sender zhang often brings together leaders of private companies particularly portfolio companies for informal discussions . he believes it is beneficial for executives to learn from one another . when leaders of jd.com met with leaders from a hypermarket company zhang said etailers learn how offline companies think and retailers learn how ecommerce companies think . 1 zhang also believes that china s business model is better suited to emerging markets and is therefore bringing that model to developing nations in asia . in indonesia hillhouse launched a joint venture between mobile messaging platform wechat and indonesia s giant communications and media conglomerate global mediacom . indonesia is now like china some years ago commented zhang . 15 sender also explains that zhang s investment philosophy is comparable to that of warren buffett which is to buy and hold . in a world of speculators zhang s philosophy stands out . 1 16 insider monkey pointed out that some of hillhouse s investment decisions could be classified as contrarian although they do maintain a considerable number of mainstream investments as well . 17 notable investors edit under a plan reported in august 2015 for stanford university to invest about 200 million with hillhouse the group will be investing money for at least six of the 10 wealthiest universities in the u.s. 18 references edit a b c d e f sender henny 20 june 2014 . zhang lei has lunch with the ft . financial times . retrieved 3 march 2015 . nadeem m. 12 january 2015 . hillhouse capital management cuts passive stake . insider monkey . retrieved 3 march 2015 . company page linkedin.com . retrieved 2016 01 11 . a b c low profile beijing fund with envious record subscription only ft.com january 12 2014 . partially retrieved 2015 08 18 . a b hu bei 20 january 2015 . hillhouse capital said to raise 2 billion private equity fund . bloomberg business . retrieved 3 march 2015 . investment philosophy . hillhouse capital . retrieved 3 march 2015 . value investing congress . retrieved 3 march 2015 . sender henny 20 june 2014 . zhang lei has lunch with the ft . financial times . retrieved 20 april 2015 . the fund is named after an avenue in new haven that s a block from where the yale investment office used to be located . mcenery thornton the 15 biggest asian based hedge funds businessinsider.com may 17 2011 . retrieved 2015 12 21 . 804 zhang value investing congress west 2010.pdf dead link valuewalk.com 2015 04 . research & rankings top of the hill institutional investor s alpha cenveomobile.com summer 2014 . retrieved 2016 01 11 . hillhouse dst and capital today to exit in jd.com s 500m follow on offering . china money network . 25 november 2014 . retrieved 3 march 2015 . in chinese . baike.baidu . retrieved 3 march 2015 . mayo and hillhouse capital china for the first time to develop flexible business model of medical services . getin . 27 january 2015 . retrieved 3 march 2015 . sender henny 20 june 2014 . zhang lei has lunch with the ft . financial times . retrieved 3 march 2015 . hillhouse capital group . crunchbase . retrieved 3 march 2015 . hedge fund hillhouse capital management . insider monkey . 31 december 2014 . retrieved 3 march 2015 . lamar mia and timothy w. martin stanford to hand 200 million to chinese fund manager marketwatch august 18 2015 . retrieved 2015 08 18 . external links edit lei zhang s lecture at columbia business school ; notes by zong z. peng via market folly.com 29 july 2015 . v t e private equity and venture capital basic investment types buyout venture mezzanine growth secondaries equity co investment history history of private equity and venture capital early history of private equity private equity in the 1980s private equity in the 1990s private equity in the 2000s terms and concepts buyout financial sponsor management buyout divisional buyout buy sell agreement leveraged recapitalization dividend recapitalization venture angel investor business incubator post money valuation pre money valuation seed money startup company venture capital financing venture debt venture round structure private equity firms and funds limited partnership limited liability company carried interest management fee publicly traded private equity business development company venture capital trust private investment in public equity pipe pledge fund investors corporations institutional investors pension funds insurance companies fund of funds endowments foundations investment banks merchant banks commercial banks high net worth individuals family offices sovereign wealth funds crowdfunding related financial terms aum cap table capital call capital commitment capital structure distribution waterfall ebitda envy ratio high yield debt ipo irr leverage liquidation preference m & a pme taxation of private equity and hedge funds undercapitalization vintage year private equity and venture capital investors private equity firms venture capital firms angel investors portfolio companies retrieved from https en.wikipedia.org w index.php title hillhouse capital group & oldid 744605824 categories companies established in 20052005 establishments in chinacompanies based in beijinghidden categories all articles with dead external linksarticles with dead external links from january 2016cs1 chinese language sources zh navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia store interaction helpabout wikipediacommunity portalrecent changescontact page tools what links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this page print export create a bookdownload as pdfprintable version languages add links this page was last modified on 16 october 2016 at 09 34 . text is available under the creative commons attribution sharealike license ; additional terms may apply . by using this site you agree to the terms of use and privacy policy . wikipedia is a registered trademark of the wikimedia foundation inc. a non profit organization . privacy policy about wikipedia disclaimers contact wikipedia developers cookie statement mobile view