Private equity firm Carlyle Group said Tuesday that it plans to invest up to US$194 million to buy a 9% stake in the mainland Haier Electronics Group (1169.HK), the WSJ reported. The transaction, which will involve US$137 million in five-year convertible bonds and US$57 million in warrants, is expected to close in August, and will give Carlyle one of the nine seats on Haier’s board. For Carlyle, the deal offers increased exposure to China’s consumer market. Haier will use the funds to expand service and distribution networks in China’s growing third-tier and fourth-tier markets. Zhou Yunjie, general manager of Haier Electronics said that “the strategic partnership with Carlyle will not only benefit our expansion in overseas markets, but also bring us advanced retail and distribution management know-how and rich investment and acquisition experience.” Carlyle has also signed a memorandum of understanding to advice the Chinese home appliance giant on potential mergers and acquisitions as well as recruitment and the selection of suppliers.