Jack Ma's private equity firm Yunfeng Capital is raising a fund with a $1 billion target, a person with knowledge of the situation said, which comes at the same time as his online commerce company Alibaba Group Holding plans a public listing in the US.

This will be Yunfeng's second fund, and at its target it would be more than three times the $300 million the firm raised for its maiden vehicle, as Ma bets big that there will be continued growth in China's consumer sector in the face of a broader economic slowdown.