FountainVest Partners has raised $2.1 billion for its most recent China-focused private-equity fund, FountainVest China Capital Partners Fund III.

FountainVest revealed that the fund was oversubscribed. The Hong Kong-based private equity firm, which is investing in consumer-focused companies in China, said it did not only receive strong support from its current investors but also from large institutional investors.

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"We remain confident about China's opportunities. The private sector, while not new as a key growth engine of the economy, has come of age. We believe that industry consolidations will intensify, mergers and acquisitions will create national leaders," Frank Tang, the CEO of FountainVest, said in a statement.

New partners of FountainVest China Capital Partners Fund III included pension plans, institutional investors, sovereign wealth funds, insurance firms, and other companies from across the world such as Asia, Australia, North America, Europe, and the Middle East.

FountainVest, which was formerly led by Goldman Sachs Group Inc. banker Frank Tang, raised under $1 billion for its first fund in 2008 and $1.35 billion for its second fund in 2012, Channel Money Network reported.  

According to The Wall Street Journal, FountainVest has been a major investor in China's media and entertainment industry. Its previous investments include movie screen firm IMAX China; online real estate firm with a convergence service platform Fangdd.com; mobile health app Xingren Doctor; and biological products manufacturer and distributor Shanghai Kehua Bio-engineering.

In April, FountainVest also teamed up with and out-of-home advertising network Focus Media Holdings to raise a $400 million fund to invest in sports companies in China and abroad.

TagsFountainVest, Frank Tang, FountainVest China Capital Partners Fund III, IMAX