HSG, the investment firm formerly known as Sequoia Capital China, has closed a $3 billion continuation vehicle anchored by a stake in ByteDance Ltd., according to people familiar with the matter. The move allowed some US investors to exit the highly-scrutinized asset. This represents a significant development for the investment firm and its limited partners seeking liquidity from one of the world's most valuable private companies. The continuation vehicle structure enables investors to maintain exposure while providing exits for those wishing to cash out. ByteDance, the parent company of TikTok, has faced increasing regulatory scrutiny in the United States, making this exit opportunity particularly timely for US investors.

Key Points:

- HSG closed a $3 billion continuation vehicle

- The fund was anchored by a stake in ByteDance Ltd.

- Some US investors were able to exit the highly-scrutinized asset

- HSG was formerly known as Sequoia Capital China

- ByteDance owns TikTok and has faced significant US regulatory scrutiny