Private equity firm Carlyle Group and Shanghai conglomerate Fosun Group have announced that they will jointly establish a US$100 million renminbi-denominated private equity fund to be based in China, the Wall Street Journal reported. The companies said the fund’s initial targets would be high-growth Chinese companies, though it would also be used to invest overseas. The fund is expected to expand opportunities for overseas investment by privately held Fosun, while boosting Carlyle’s global private equity business. Carlyle said it has committed to 40 investments in China, together worth more than US$2.5 billion. However, not all of its attempts have met with success: In 2005, regulators denied its plan to buy 85% of heavy equipment manufacturer Xugong for US$375 million.
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