Shanghai-headquartered Chinese conglomerate Fosun International is raising a US$1 billion private equity fund. Named China Momentum Fund, it will invest in European and international companies seeking to expand in China, according to a media report.
Fosun is hoping to raise the money from institutional investors such as pension funds and family offices outside of China. When completed, it will be Fosun’s second U.S. dollar fund.
Fosun has formed partnerships with several foreign private equity players to help strengthen its international investment activities.
It has a US$600 million joint fund with U.S. insurer, Prudential Financial, set up in 2011. The fund is already 80% invested, according to the same media report.
In 2010, Fosun joined forces with the Carlyle Group to set up a US$100 million fund denominated in RMB to invest both inside and outside of China.
Last June, Fosun established a strategic partnership with Danish private equity firm Axcel to look for investment opportunities in northern Europe. Established in 1994, Axcel’s strength is investing in medium-sized companies in Denmark.
With no previous track record of investment performance outside of China, whether Fosun can successfully realize its ambition will be a major test for the China’s largest private conglomerate.