Hedge fund Coatue raises more than $500 mln for second PE fund

  • Second private equity fund targets $750 mln
  • Fund focuses on tech and China’s internet sector
  • Fundraising began in January

Coatue Management, the hedge fund that invests in venture rounds, raised about $543 million for its second private equity fund, according to a person with knowledge of the fundraising.

Coatue launched Private Fund II in January targeting $750 million, according to the firm’s Form ADV and two people with knowledge of the firm. Coatue issued a Form D filing this week showing the fund raised $406.6 million from 175 investors. It’s not clear if the Form D indicates a first closing.

Fund II focuses on late-stage and growth-stage investments in the telecommunications, media and technology sectors, according to another source.

Placement agent Park Hill Group is working on the fundraising. Along with Park Hill, the Form D lists J.P. Morgan Securities and Credit Suisse Securities (USA) LLC as parties receiving sales compensation.

Private Fund I collected more than $300 million in 2013. Coatue opened a Silicon Valley office the same year. Last year the firm opened a wholly foreign-owned enterprise in Beijing called Coatue (Beijing) Investment Consulting Co, according to the Form ADV filing. Part of the firm’s investment mandate includes a focus on China’s Internet sector, the ADV said.

Philippe Laffont founded Coatue in 1999. The firm managed about $9.4 billion of client net assets on a discretionary basis, as of December 31.

Coatue made a big push into venture investing over the past year. It partnered with TPG Growth on a $150 million funding in data storage company Box, participated in a $250 million funding round in ridesharing service Lyft, and led a $45 million funding in hotel booking app HotelTonight.

In March, Uxin, a Beijing-based used car auction company, said it raised $170 million from Baidu, Kohlberg Kravis Roberts and Coatue.