Chinese central bank invests in new TPG fund -FT
BEIJING, June 11 (Reuters) - The State Administration of Foreign Exchange, an arm of China's central bank, has agreed to invest more than $2.5 billion in the latest fund being set up by U.S. private equity firm TPG Capital [TPG.UL], the Financial Times reported on Wednesday.
The paper, reporting from New York, cited people familiar with the matter.
The investment would mark a new step in SAFE's strategy to diversify China's $1.75 trillion in foreign exchange reserves, which it manages and are invested mainly in dollar bonds and other fixed-income instruments.
SAFE, whose investments are a state secret, has also bought small stakes in a trio of Australian banks and oil majors BP (BP.L) and Total (TOTF.PA), according to those firms and media reports.
Buying into TPG, also known as Texas Pacific, would also underline China's growing interest in private equity.
China Investment Corp, a sovereign wealth fund set up last year to manage a separate pool of $200 billion in reserves, has ploughed $3.2 billion into a private equity fund set up by New York-based J.C. Flowers & Co that will target financial institutions.
CIC also bought a $3 billion equity stake in private equity house Blackstone Group (BX.N) before its initial public offering last year.
The new TPG fund has not closed but has about $17 billion in assets, the FT reported. TPG last week agreed to buy a 23 percent stake in British mortgage lender Bradford & Bingley BB.L. (Reporting by Alan Wheatley; Editing by Ken Wills)
