Airbnb Raises $1.5 Billion in One of Largest Private Placements

The WSJHome-rental service Airbnb Inc. has completed one of the biggest private-funding rounds ever, raising $1.5 billion, in a deal that values the company at $25.5 billion, according to people familiar with the matter.

Leading the round were private-equity firm General Atlantic Inc., Hillhouse Capital Group of China and investment firm Tiger Global Management, which are collectively buying about a third of the shares allocated for the round, the people said.

The deal, on which Morgan Stanley served as adviser, included Singapore’s Temasek Holdings as well as venture-capital firms Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital and Horizon Ventures.

Also investing were several public “crossover” investment funds that are taking stakes in private companies ahead of initial public offerings. Mutual-fund firms Wellington Management and Baillie Gifford bought in, while T. Rowe Price Group Inc. and Fidelity Investments increased their stakes, the people said.

Read more on the topic: E27.CO, TechInAsia