By Echo Wong and Cathy Chan | Updated on Oct 06, 2026 at 07:39 AM
Middle East sovereign wealth fund Abu Dhabi Investment Authority and private equity firm Coller Capital are in talks to back a continuation vehicle anchored by a stake in Chinese tech giant ByteDance, according to people familiar with the matter.
The continuation fund is being arranged by Primavera Capital, a long-time ByteDance investor, and is targeting around $1 billion, one of the people said, asking not to be named discussing private matters.
The private equity firm will move the ByteDance shares and a smaller stake in Ant Group from its Primavera Capital Fund III into the new vehicle, valuing the two stakes at about a 30% discount to their combined net asset value of $1.5 billion, the person said.
The implied valuations for ByteDance could range from $400 billion to $450 billion, depending on how investors allocate the discount between the two stakes. That is below where the stake is marked in the current vehicle but it represents a big jump from ByteDance’s valuation during a similar transaction earlier this year , when private equity firm HSG transferred a stake into its own continuation vehicle.
ADIA is looking to put some $400 million to $600 million into the new Primavera fund, while Coller will invest between $100 million and $200 million, one of the people said. The ultimate size of the new vehicle isn’t finalized and the process could change. Some investors, including existing ones in the older vintage, are still considering whether to join, the people said.
Read More: Primavera Seeks to Sell Shares in ByteDance, Ant to New Fund
Primavera Capital Fund III holds a $1.2 billion stake in ByteDance and around $275 million of Ant Group, according to a person familiar with the matter. Its recent marks imply a $600 billion valuation for ByteDance and $120 billion for Ant, the people said.
Spokespeople at Coller, Primavera and ADIA declined to comment. ByteDance didn’t respond to an emailed request for comment.
Continuation vehicles have become a popular way for private equity firms to prolong their exposure to long-term investments while giving their own investors a way to get their money back.
Earlier this year, shares in ByteDance were used to anchor a continuation fund by HSG, formerly known as Sequoia Capital China. The holdings of ByteDance in the new vehicle implied a valuation of about $370 billion .
Ant, which operates payments platform Alipay, was valued at $150 billion in 2018 when a group of international investors including Primavera took part in a $14 billion private funding round.
Primavera Capital Fund III is an eight-year-old fund which had around $3.9 billion of assets at the end of March. The vehicle still holds other assets, one of the people said.