Primavera Capital is exploring plans for a new Asia-focused private equity fund, as regional managers cautiously return to the market amid continued geopolitical and fundraising headwinds, according to a report by Bloomberg.

The Hong Kong-based firm, founded by former Goldman Sachs dealmaker Fred Hu, has sounded out investors on a vehicle targeting technology and consumer opportunities. The fund could be smaller than Primavera’s previous $4bn raise, reflecting more selective institutional appetite for China-related exposure.

US endowments and pensions have pulled back from allocating to Asia-focused strategies, while geopolitical tensions have weighed on fundraising timelines. Against that backdrop, Primavera joins firms such as Bain Capital and Hillhouse Investment Management in reassessing fund size and pacing.

Primavera has a long track record in Chinese growth and buyout investing, with past investments spanning AI, climate technology, robotics, and consumer platforms. 

The firm declined to comment on the fundraising discussions.

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