Carlyle to associate with Fosun to bring about yuan-denominated private equity fund

It has come to the knowledge, thanks to the annunciation of Fosun International Ltd, premier and largest non-state-owned conglomerate in the realm of China, that U.S. takeover giant Carlyle Group will associate with it to bring forth a yuan-denominated private equity fund before long. With regard to this the two giant companies have already signed an agreement and it is to set up a strategic relationship, under which Carlyle and Fosun will sponsor in cooperation and deal with a yuan fund to invest in high-growth companies.

Carlyle and Fosun, is operated at the behest of high-ranking tycoon Guo Guangchang, who was ranked by Forbes as China’s 20th richest person in 2009 and plans to commence the fund with an initial investment of $100 million from both Carlyle and Fosun. The fund will be co-branded in the name of Carlyle and Fosun. In accordance with the statement prepared by the two, the two companies will also look for to increase capital from local Chinese investors for following yuan-denominated funds and make co-investments internationally.

What are the current activities then? Well, global takeover firms such as Carlyle and the Blackstone Group (BX.N) are in quest of partnerships with the intention of launching local yuan funds in the hope that they can perform deals faster and without problems in China, where endorsement for major foreign investments is difficult to get hold of.

However, this is not all since alone, Carlyle also plans to increase its own China-dedicated private equity fund, and this will be registered in Beijing and denominated in yuan.

On the word of Chief Executive Liang Xinjun, Fosun, with businesses ranging from pharmaceuticals and real estate to steel making, plans to make investment in consumer-related companies bigger in the next few years, and aims to expand financial-related businesses.