Chinese VC firm eyes US$400 million loan to fund buyout of rock icon Marshall

Chinese venture capital firm HongShan Capital Group is in talks with banks for an around US$400 million (HK$3.12 billion) loan to back its acquisition of audio equipment maker Marshall Group, according to people familiar with the matter.

HongShan, whose overseas brand is best known by its acronym HSG, is reaching out to regional and international banks for the loan, which could have a tenor of five to seven years, the people said, asking not be identified discussing private matters.

Details could be subject to change as discussions are ongoing, the people added. A spokesperson for HSG declined to comment.

In January, HSG agreed to buy a majority stake in Stockholm-based Marshall Group in a deal valued at €1.1 billion (HK$8.96 billion). The acquisition, which is still subject to regulatory approvals, will mark the firm’s largest investment in Europe to date.

HSG — formerly Sequoia China — has investments across technology, health care and consumer sectors and manages over US$55 billion in assets. Since its founding in 2005, it has backed more than 1,500 companies, including Alibaba (9988), BYD (1211) and ByteDance, according to its website.

BLOOMBERG