Reportedly, Calyle and Fosun have signed an agreement to jointly sponsor and manage the yuan fund to invest in high-growth companies. The two firms plan to raise additional capital from domestic Chinese investors for subsequent yuan-denominated funds and make co-investments globally.
The partnership with Fosun is Carlyle’s second. In September 2009, the firms had jointly invested in Chinese infant formula producer Guangdong Yashili Group. Calyle and Fosun said that the partnership would complement their growth strategies as Carlyle seeks to expand in China, while Fosun intends to expand financial-related businesses and become more globalized.
The partnership is Carlyle’s latest move to expedite its growth in China, which the US-based firm has recognized as one of the world’s most attractive private-equity markets. Earlier this year, Carlyle had evinced its interest to raise its own China-focused private equity fund, managed by Carlyle Asia Partners, which will be registered in Beijing and denominated in yuan.
