- Taxes on some wealthy French top 100 pct of income: paper
- North Korea fires short-range missiles for two days in a row |
- Israel warns against Russian arms supply to Syria
- Winning ticket for $590.5 million Powerball lottery sold in Florida |
- Toyota plans to increase lithium-ion car battery output-Nikkei
TPG launches second yuan fund in China's Chongqing
SHANGHAI Aug 24 (Reuters) - TPG [TPG.UL], one of the world's biggest private equity firms, launched on Tuesday its second yuan-denominated fund in China, underscoring its ambition to expand in the world's fastest-growing major economy.
TPG said it aims to raise 5 billion yuan ($736 million) in a new fund to be set up in China's western city of Chongqing, a day after the San Francisco-based buyout firm launched a similar fund in Shanghai, China's financial hub along the eastern coast.
"I believe the growth of Western China will be the defining story of the next thirty years, creating vast investment opportunities and we would like to be part of it," Sing Wang, co-chairman of TPG China, said in a statement.[ID:nTOE67M07S]
The world's biggest buyout firms including TPG, the Carlyle Group [CYL.UL] and the Blackstone Group (BX.N), are racing to launch yuan-based funds in China, where the government is encouraging private equity investment to channel more savings into the private sector to help sustain economic growth.
Carlyle said last month that it had received 2.4 billion yuan in commitments for its Beijing-based yuan-denominated fund, and it formed another China fund with Shanghai-based Fosun.
Blackstone last August unveiled plans to launch a 5-billion-yuan fund in Shanghai.
In the next few months, TPG will start fundraising for its Chongqing fund, which will make on-shore investments to support the growth and expansion of Chinese companies to and from Western China.
For its Shanghai-based fund, TPG has secured funding from the local government and will also tap Chinese insurers as potential investors, founding partner James Coulter told Reuters on Monday.
TPG's landmark deals in China include investments in Shenzhen Development Bank (000001.SZ) and China's top PC maker Lenovo (0992.HK).
TPG, which backed brands such as Burger King BKC.N and Bally, has more than $57 billion of assets under management globally, while China is its second-biggest market in terms of committed capital. ($1=6.79 Yuan) (Reporting by Samuel Shen and Jacqueline Wong)
- Tweet this
- Share this
- Digg this