Carlyle To Set Up RMB1 Billion Joint Fund With HeBei Construction & Investment Group

Washington, D.C.-headquartered private equity firm, The Carlyle Group, is said to establish Carlyle Asia RMB Growth Fund, a joint fund with RMB1 billion under management.

The fund is set up with a local partner, HeBei Construction & Investment Group, a government-backed investment company based in HeBei province. The local partner is to contribute RMB300 million to the joint fund, according to local news reports.

Carlyle’s media representatives declined to confirm or comment on the news.

Founded in 1987, Carlyle Group manages more than US$176 billion in assets across 114 funds and 76 fund-of-funds vehicles.

Carlyle has already established two RMB funds: One with the Beijing Municipal Government with target fund size of RMB5 billion; the other is a joint fund with Shanghai Fosun High Technology Group. The establishment of both funds is announced in 2010.

Numerous private equity giants, including the Blackstone Group, KKR and TPG, have set up RMB funds in China, hoping to obtain more local deal flows and easier investment process.

Founded in 1988, HeBei Construction & Investment Group is a state-owned financial and investment entity under the supervision of the State-Owned Assets Supervision & Administration Commission Of HeBei Province.

The company focuses on investing in energy, resources, transportation, water works, tourism, commercial properties and infrastructure projects vital to the province’s economy.

HeBei government is hoping that this partnership with a global private equity powerhouse like Carlyle will help strengthen its economy and industries, according to the same media reports.