Latest news with #AbigailJohnson
Mint
3 days ago
- Business
- Mint
Billionaire Johnson Family's VC Fund to Exit China Tech Holdings
A venture capital fund backed by Fidelity Investments' billionaire Johnson family plans to unload its Chinese technology holdings amid heightened tensions between Beijing and Washington, according to people familiar with the matter. Eight Roads, Abigail Johnson's family firm that was an early investor in China's internet sector, began exploring the sale of all its investments in about 40 Chinese tech companies earlier this year, the people said, asking not to be identified discussing a private matter. The companies are being sold at a discount ranging from 60% to 80% of their peak valuation, which was about $1 billion combined, the people said. The negotiations are ongoing and could be subject to change, the people added. The stakes include that of self-driving car company Pony AI Inc., which Eight Roads still holds due to a lockup period, the people said. Growing geopolitical tensions were a key driver behind the move, after the US imposed restrictions on investments in China's advanced technology sector in January, the people said. Since then, trade friction has escalated after US President Donald Trump hiked duties on Chinese goods, prompting retaliation from Beijing. Eight Roads made a decision last year to not actively pursue new investments in China tech companies in response to the changing regulatory environment, a spokesperson said in a statement to Bloomberg News. A smaller team will continue to manage the firm's existing portfolio, and focus on its health-care business in China, the company added, declining to comment further. The firm has invested more than $1.1 billion in about 130 companies in China, according to its website. Globally, the fund that was started in 1969 by the Johnson family has backed some 500 companies in markets including India and Japan. Eight Roads has more than $11 billion in assets under management. The sell-down follows a broader pullback by the firm in China. About a year ago, Eight Roads let go more than a dozen people on its China tech team, leaving a handful to take care of its existing portfolio, a person familiar with the matter said. The most recently announced China tech deal by Eight Roads was in 2023. According to Eight Roads' website, more than 20 people out of its some 30 staff in China focused on health care, while four focused on tech. Eight Roads' retreat underscores the challenges US investors face in China. Investment exits via public markets have been tightly controlled, as many startups need a nod from China's securities watchdog even when seeking to list offshore. In Hong Kong, recent blockbuster deals like the listing of the Contemporary Amperex Technology Co. revived sentiment for initial public offerings. Yet longer term investors are still waiting for more conviction to return to the region, especially for early-stage tech firms confronting an economy under deflationary pressure. Some investors have shown renewed interest in the country's AI scene, with more on-the-ground visits after DeepSeek's advances stunned Silicon Valley. But many are cautious committing new capital. Investors who have shown interest in Eight Roads's assets include some Chinese tech-focused private and venture capital funds and a Hong Kong-listed financial firm, the people said. After a separation in 2019 from Fidelity International, which is backed by the Johnson family, Eight Roads said it still counts on the Fidelity network for funds and had no plans to raise third-party money. Abigail Johnson is the chief executive officer of FMR Corp., the parent of Fidelity Investments. She has a net worth of more than $39 billion, according to the Bloomberg Billionaires Index. This article was generated from an automated news agency feed without modifications to text.
Yahoo
20-02-2025
- Business
- Yahoo
Fidelity Assets Hit $5.9 Trillion as Revenue Jumps to Record
(Bloomberg) -- Fidelity Investments, the world's third-largest asset manager, saw assets in its funds rise by $1 trillion over the past year and revenue jump to a record high. Why Barcelona Bought the Building That Symbolizes Its Housing Crisis Por qué Barcelona compró el edificio que simboliza su crisis inmobiliaria Trump Child Refugee Agency Shares Data With Immigration Enforcers A Filmmaker's Surreal Journey Into His Own Private Winnipeg Assets under management, which are held in Fidelity's own investment funds and managed accounts, hit $5.9 trillion in 2024 from $4.9 trillion a year earlier, the Boston-based firm said Tuesday in its annual report. Revenue jumped 16% to a record $32.7 billion, while operating expenses rose 14%. Asset-based revenue was helped by the performance of actively-managed equity and fixed income funds, Chief Executive Officer Abigail Johnson said. Fidelity also saw inflows into money market funds, direct-sold index products and managed accounts. Johnson, whose grandfather Edward Johnson II founded Fidelity in 1946, said the results were boosted by rising markets and interest rate conditions. Assets under administration across the firm rose 20% to $15.1 trillion. Unlike rivals such as BlackRock Inc. and Vanguard Group Inc., Fidelity has a number of adjacent revenue-generating businesses outside asset management, including brokerage services as well as administration for 401(k) pensions, that have helped the privately-held company defy the structural changes that are plaguing the wider industry. Active asset managers have grappled with outflows and squeezed margins as investor preferences increasingly change. In her 10 years atop the firm, Johnson has expanded Fidelity into new alternative investments, including cryptocurrencies, and expanded its passive and active exchanged-traded funds. The firm is also making a bigger push into private markets, including private credit, and in 2024 it raised its first fund dedicated to venture capital investments. Fidelity's brokerage platform for asset managers also partnered with fund administrator Stone Coast Fund Services to create an offering for hedge funds. The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory Before DeepSeek Blew Up, Chatbot Arena Announced Its Arrival The Unicorn Boom Is Over, and Startups Are Getting Desperate The Startup That Stepped In When the Baby Formula Supply Chain Broke Japan Perfected 7-Eleven. Why Can't the US Get It Right? ©2025 Bloomberg L.P.
