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Blue Oak launches USD100m fund for China

Blue Oak Capital has launched and completed the first close of a USD100m fund to invest in mid-market companies in China. 

The fund has been launched in partnership with a division of the Xi’an government, and is structured to allow it to repatriate funds back to Western investors.

UK mid-market private equity firm LDC is a major investor, contributing USD20m.
In contrast to the Western world, where markets continue to suffer the fallout of the banking crisis, China’s buoyant economy and strong renminbi have made the country increasingly attractive to private equity investment. Evidence of this can be seen through recent co-operation agreements between Blackstone, Carlyle and the Chinese government.
The Blue Oak China Venture Fund is an onshore RMB denominated fund, with a life of seven years, and a four-year investment period. It is targeting a 25 per cent internal run rate.
The firm, with offices in Xi’an and Beijing, will invest in post revenue, expansion, growth and pre-IPO stage businesses, mainly in Western China, with a broad range of enterprise values and equity tickets of USD5m to USD20m.

It will target most industry sectors, with a focus on alternative energy, new materials, environmental protection, consumer products, retail and logistics.

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