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Carlyle Beijing RMB Fund completes first closing and is ready to invest

Alternative asset manager The Carlyle Group has held the first closing of its RMB Fund, which is now ready to invest.

Alternative asset manager The Carlyle Group has held the first closing of its RMB Fund, which is now ready to invest.

The RMB Fund, which has a target size of RMB5bn (approximately USD740m), will make investments in large growth companies in Beijing and across China.

Carlyle has received more than RMB2.4bn (approximately USD350m) in commitments from a variety of sources, including Beijing State-owned Capital Operation and Management Center and Beijing Equity Investment Development Fund, as well as other large state-owned enterprises, private companies and individuals.

Carlyle has set up an investment management joint venture – Carlyle (Beijing) Investment Management – with Beijing State-owned Capital Operation and Management Center. Carlyle holds an 80 per cent stake in the joint venture, which will serve as an adviser to the RMB Fund.

David M. Rubenstein, co-founder and managing director of The Carlyle Group, says: “With strong support from the Beijing Municipal Government, Carlyle Beijing RMB Fund has had a successful first closing with significant capital committed by a number of high-quality institutional and individual investors who we are proud to call our partners. Carlyle is committed to long-term, responsible and value-creating investment in China. 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.”

JI Lin, executive vice mayor of Beijing Municipal Government, says: “As the country’s centre for financial policy making, financial management, financial information and financial services, Beijing has developed itself into a sophisticated hub with a substantial presence of financial institutions. It is also an opportune time for the significant development of the private equity industry. By working with global firms such as Carlyle, we will leverage private equity investments to grow local enterprises and structurally transform the local industries. We also view this as an important step to solidify the foundation for rapid and healthy development of the private equity industry and the broader financial industry in Beijing.”

The RMB Fund will invest alongside Carlyle Asia Partners, which manages more than USD5bn in three existing USD-denominated funds and pursues independent investments in large growth companies in Asia. The RMB fund will be entitled to preferential policies offered by the Beijing Municipal Government, in accordance with its development policies for the city’s finance and other industries.

To date, Carlyle has invested more than USD3bn in China through over 50 deals.

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