Fosun, Prudential PE fund seeks bargains outside of China

A US$600 million private equity fund launched on Monday by Fosun International (0656.HK) and Prudential Financial (PRU.NYSE) plans to give more consideration to attractive valuations overseas rather than the overheated Chinese market, MarketWatch reported. “Since last year, there has been exponential growth in China’s private equity activities. The hundreds of private equity firms are chasing deals at the same time and driving up prices,” Fosun Chairman Guangchang Guo said at a New York press conference. After weathering the financial crisis, some foreign companies have relatively attractive valuations, Guo added. Fosun will make investment decisions for the fund, called Pramerica-Focus China Opportunity Fund, which has a mandate to target Chinese firms as well as foreign firms with a significant interest in China. Fosun made its first overseas investment in June with the purchase of a 7% stake in French vacation club and travel operator Club Mediterranee SA (CU.EPA).