Carlyle raises RMB fund

U.S. private equity giant The Carlyle Group said last week it had raised 2.4 billion yuan ($354 million) in commitments for its Beijing-based yuan-denominated fund, and would begin making investments in large growth companies.

Carlyle has set up a joint venture with Beijing State-owned Capital Operation and Management Center, the city’s biggest government-owned company, to help manage the Beijing RMB Fund, which aims to raise 5 billion yuan ($739 million), according to a statement.

“Carlyle is committed to long-term, responsible and value-creating investment in China,” David Rubenstein, co-founder and managing director of Carlyle said in the statement.

“Through this RMB fund, we will expand our investment capabilities and efforts in Beijing and across China to serve the growing number of Chinese investors.”

Global buyout firms such as Carlyle and The Blackstone Group are racing to launch yuan-based funds in an effort to carry out deals more quickly and easily in China, where it is difficult to obtain approval for major foreign investments.

Meanwhile, Chinese cities including Shanghai, Beijing and Tianjin are competing to woo foreign private equity firms as China seeks to channel more money into the private sector to create jobs and sustain economic growth.

The Carlyle Beijing RMB Fund is now ready to invest, mainly in large-scale companies with high growth prospects, the company said, without identifying the industries it prefers. —Samuel Shen and Jason Subler, Reuters