Yunfeng Capital, Silver Lake and other investors completed the purchase of a 5 percent stake in Alibaba Group, parent of listed Alibaba.com Ltd, worth $1.6 billion on November 1, a source told Reuters on Thursday.
The source declined to be identified because he was not authorized to speak to the media.
Officials at Alibaba were unavailable for comment.
In September, private equity firms Yunfeng, co-founded by Alibaba founder and Chief Executive Jack Ma, U.S.-based Silver Lake and Russia's DST Global said they would buy shares of China's largest e-commerce group.
The private equity firms were purchasing the shares by leading a tender offer for employee shareholders, option holders and certain other shareholders of Alibaba Group.
Alibaba.com's shares ended 1.8 percent higher, outperforming the broad market's 2.5 percent fall.
(Reporting by Huang Yuntao; Editing by Kazunori Takada)