Global alternative asset manager The Carlyle Group held the first close of its RMB Fund.
The fund, which has a target size of RMB 5 billion (approximately US$740m), is now ready to make investments in large growth companies in Beijing and across China.
Carlyle has received more than RMB2.4 billion (approximately US$350m) in commitments from different sources, including:
– Beijing State-owned Capital Operation and Management Center (BSCOMC),
– Beijing Equity Investment Development Fund,
– other large SOEs,
– private companies,
In addition, Carlyle has set up an investment management joint venture – Carlyle (Beijing) Investment Management Co., Ltd – with BSCOMC, the largest SOE in Beijing.
Carlyle holds an 80% stake in the joint venture, which will serve as an advisor to the RMB Fund.
Through the joint venture, Carlyle and BSCOMC will work together to identify opportunities and share each other’s best practices and resources to tap the growth opportunities in China.
The RMB Fund will invest alongside Carlyle Asia Partners, which manages more than US$5 billion in three existing USD-denominated funds.