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Carlyle Group to set up Renminbi denominated fund to expand investment reach in China

Carlyle Group LLC has signed a memorandum of understanding with the Beijing Municipal Bureau of Financial Work to form an Renminbi (NYSEARCA:RMB) denominated fund in Beijing to invest alongside Carlyle Asia partners and pursue independent investments in larger growth companies.

The Carlyle Asia Partners RMB Fund will be entitled to preferential treatment from the Beijing municipal government, in accordance with its development policies for the city’s finance and equity investment industry.

“Carlyle is committed to long-term, responsible and value-creating investment in China. The Carlyle Asia Partners RMB Fund will help expand our investment capabilities in Beijing and across China, further Carlyle’s strategy of localizing our franchise in China and contribute to the healthy development of the local private equity industry,” said founding partner and managing director of the Carlyle Group Daniel D’Aniello.

The Carlyle Asia Partners RMB Fund will raise RMB-denominated capital and make equity investments in larger growth companies in China.

The private equity group said that China has become one of its most attractive investment destinations in the world owing to the fast growth of its economy. Carlyle has so far invested more than US2.5 billion in more than 40 deals in China.

Disclosure: The author holds no positions in the company