HSG is preparing a continuation vehicle that would value ByteDance at up to $370bn, highlighting the growing use of secondary structures to extend exposure to high-performing private assets, Reuters reports.

The venture capital firm, formerly known as Sequoia Capital China, plans to transfer part of its ByteDance holding into a new continuation fund. The valuation range of $350bn to $370bn exceeds levels implied by recent employee share buybacks, but remains below a $480bn valuation seen in a November secondary transaction.

HSG owns just over 11% of ByteDance and is one of the TikTok parent’s largest external shareholders. Sources said ByteDance shares would dominate the new vehicle, although it remains unclear how much of HSG’s stake will be rolled over.

Continuation funds allow private equity and venture firms to move assets from maturing vehicles into new structures, offering existing investors liquidity while enabling sponsors to maintain ownership of assets they believe still have upside.

ByteDance’s valuation rebound has been supported by strong revenue growth and profitability. The company’s revenues in the first half of 2025 surpassed those of Meta’s Facebook and Instagram, making it the world’s largest social media business by sales, according to Reuters. Sources said ByteDance’s profit could reach about $48bn in 2025.

The fundraising underlines sustained investor appetite for exposure to large-scale private technology platforms, even as exit markets remain constrained.

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