HSG is looking to raise a multi-asset continuation vehicle (CV) that includes a portion of its position in ByteDance, according to three sources familiar with the situation.

The size of the transaction has yet to be confirmed. However, it would give ByteDance – which owns businesses such as video-sharing apps TikTok and Douyin and news platform Toutiao – a valuation of at least USD 350bn, the first source said.

HSG, formerly known as Sequoia Capital China, holds just over 11% of the company. It plans to transfer only a small piece to the CV, all three sources noted. If as little as 1% were transferred at the stated valuation, it would rank among the largest CVs ever raised globally.

The third source noted that existing LPs expect a standard CV process, in which they would have the right to exit or rollover their holdings. The reported impending sale of TikTok’s US operation is not seen as an impediment.

HSG, which formally separated from Sequoia’s US entity in 2024, has exposure to ByteDance through several funds. According to AVCJ Research, HSG led a USD 100m Series C round for the company in 2014 at a reported valuation of USD 500m. It also featured in a USD 1bn Series D in 2016.

Neil Shen, HSG’s founding and managing partner, is one of ByteDance’s five board members. The others are CEO Rubo Liang, Arthur Dantchik, co-founder of Susquehanna International Group (SIG), William Ford, CEO of General Atlantic, and Xavier Niel, founder of French telecom giant Iliad.

SIG became ByteDance’s first institutional backer in 2012. General Atlantic participated in a USD 2bn funding round in 2017 at a reported valuation of USD 20bn. HSG, SIG, and ByteDance’s founders and employees are the three largest shareholder groups, the second source said.

The company runs an active buyback programme. Last year, it offered to acquire shares from employees at a USD 330bn valuation. Meanwhile, Bloomberg reported in November 2025 that Capital Today China Group acquired a stake from another financial sponsor through an auction process at a USD 480bn valuation.

HSG claims USD 55bn in assets under management across seed, venture, growth, buyout, infrastructure, and public equities strategies. Initially a China-focused VC, the firm is increasingly global in outlook. Last month, it agreed a take-private of Italian luxury sneaker maker Golden Goose.

HSG raised USD 8.8bn for its latest set of China seed, venture and growth-stage funds in 2022.

HSG declined to comment.