Carlyle holds second close on RMB vehicle

The RMB3.2bn fund’s registration with China’s National Development and Reform Commission will allow Carlyle to manage Chinese social security funds.

The Carlyle Group has held a second close on its RMB3.2 billion (€349 million; $496 million) Beijing Carlyle Investment Center. It is the first fund affiliated with a global investment firm to register with China’s National Development and Reform Commission, Carlyle said in a statement.

The fund held its first close at RMB2.4 billion (€271 million; $354 million) last year. It is targeting RMB5 billion, although a source close to the firm classified fundraising as “open-ended”.

The fund will invest in large-growth Chinese companies, targeting around $75 million per transaction, and has already completed an undisclosed transaction in the consumer/retail sector. 

The fund is advised by Carlyle (Beijing) Investment Management, a joint venture between Carlyle and the Beijing State-owned Capital Operation and Management Center (BSCOMC). BSCOMC, Beijing Equity Investment Development Fund, state-owned enterprises, private companies and individuals committed to the fund prior to its first close. New commitments to the fund were not disclosed. 

Beijing

Local equity investment funds greater than RMB500 million are required to register with the NDRC in Beijing, Tianjin and Shanghai, as well as the Zhejiang, Jiangsu and Hubei provinces. Beijing Carlyle Investment Center’s registration with the NDRC also allows the firm to market the fund to Chinese institutional investors, including social security funds.

Carlyle also operates a second fund through its Asian buyout unit, Carlyle Asia Partners, which closed its third US-denominated fund on $2.55 billion last year.

Last month, Carlyle was one of five funds approved by for the Shanghai’s Qualified Foreign LP (QFLP) programme, which allows foreign firms to commit to their onshore-RMB denominated private equity funds. DT Capital Partners, The Blackstone Group, Hong Kong-based First Eastern Investment Group and a joint venture between CLSA and state-owned Shanghai Guosheng Company were also approved.