Blackstone China
Blackstone China
Blackstone and Others Opening Buyout Funds in China
I found a good article today covering what we’ve been seeing a lot of lately, private equity in China. Last week I wrote about the Carlyle Group investing more and more in the region and now the Blackstone Group has opened a new $732 million fund in China, denominated entirely in Chinese currency.
The Times notes that first, this is a sign of a strong confidence in the Chinese currency (formally called renminbi) and second, Blackstone’s move represents a broader shift of private equity firms raising capital from rich Chinese individuals and persons. I believe investment in China will only increase as its economy continues to expand and its financial markets develop, and private equity groups will be at the forefront of this movement toward China.
Chinese private equity funds are emerging in big cities as China promulgates new regulations aimed at creating a homegrown private equity industry, one that Beijing hopes will strengthen the country’s capital markets and fuel private sector growth in an economy overly dependent on government investment.Industry experts say that to compete with China’s growing funds, global firms like Blackstone, the Carlyle Group and even the buyout firm Kohlberg Kravis Roberts are scrambling to form funds denominated in renminbi. Analysts say it has suddenly become the currency of choice for private equity firms operating in China.
“Now, more and more deals are being done with local funds,” said Wang Chaoyong, chairman of China Equity, a large private equity firm based in Beijing. “Even internationally invested companies are switching to local currency.” Source
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Tags: investment in China, private equity china, private equity firms in China, china private equity, private equity Shanghai, buyouts china, Chinese
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