Carlyle Fosun set up RMB fund in Shanghai

The fund, which will emerge as a joint name, will be Carlyle's first joint naming fund in the Chinese market, "Financial network Beijing special correspondent Hutze" the Carlyle group, which is due to announce in Shanghai later on February 24,　　With the Shanghai Fosun High-tech group jointly set up a renminbi-denominated private equity fund, the initial fund-raising target of about 100 million dollars in size, the Future Fund investment business, will be Carlyle and Fosun Group jointly management, decision-making.　　The new fund will be administered by the Asia Growth Fund team led by Carlyle Group managing director and the head of the Asian venture capital fund, according to a person familiar with the matter.　　Given the reluctance of Carlyle and Fosun to disclose details, the size of their contributions, their respective proportions, and the composition of the investment management team are unclear, but the fund's determination to co-brand in the form of a joint name will be Carlyle's first joint-name fund in the Chinese market. The move by Carlyle and Fosun to set up a private equity fund is a sign that the two sides have reached a deeper level of mutual understanding. Last September, Carlyle and Fosun had been investing together in the stock market downturn of the China dairy industry in the buyout crisis, the Carlyle Group's buy-out Fund (Fund), with Fosun Group's Fosun run equity investment company, was injected into the Guangdong dairy industry Group,　　They obtained 17.3% and 6% per cent of their shares respectively, and their respective directors entered the company's board of directors.　　After the experience of investing in a single target company, it is clear that the two sides have decided to broaden their investment experience and jointly set up an investment team. One private-equity group said there was keen interest in the establishment of a "renminbi-denominated" fund, with the Blackstone, led by Carlyle Group and former Hong Kong Financial Secretary Antony Leung, the most active, as the renminbi fund facilitates the absorption of local Chinese capital, raising funds,　　Access to local investors is very helpful, and most funds are deeply attracted to it. However, private equity practitioners also pointed out that because most of the private equity headquarters in Hong Kong, the fund returns to investors in the local, will not encounter the exchange of money, taxation and other issues, the fund returns to the management team, funds remitted to Hong Kong, but may encounter a swap, taxation, regulations and other complex problems　　Whether such operating costs should be borne by the overall fund (which would weaken the feedback of local investors in China) or the burden of managing the team in Hong Kong (which would weaken the interests of the private equity firms themselves) would be a problem of decision making. At present, international private equity funds mainly by foreign investors to raise sources of capital, China as the main investment target; Once private equity funds start to absorb capital in China and carry out similar "Ashley-lee" investment cases, "Chinese fund betting Chinese companies" will be formed; in the private equity industry, For the same investment target of Chinese companiesInvestors, there are many questions, questioned whether the foreign currency fund and the renminbi funds are different treatment of investment.　　In January 2010, the Carlyle Group signed a memorandum of understanding with the Beijing Financial Services Bureau, which plans to set up a 5 billion yuan fund in Beijing. The Carlyle Group's Asia Growth Fund team now has four funds, and a joint fund with Fosun Group will be the team's fifth fund. Carlyle's investment in China, including the Asia Growth Fund, the buy-out fund and the real Estate fund, is now over $2 billion trillion.