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.

The continuation fund got demand from Lunate, an Abu Dhabi-based firm which manages $115 billion, one of the people said. Singapore state funds also backed the vehicle, joining a mix of Asian and Middle Eastern investors, the people added.