Fosun Capital has raised $525 million toward its China Momentum Fund, according to a regulatory filing from the US Securities and Exchange Commission.
The fund is targeting $1 billion, so the amount likely represents a first close for the Chinese private conglomerate, which was expected, according to media reports, to make a first close on $300 million in June.
Fosun did not respond to requests for comment.
Fosun launched the vehicle in May, planning to target international LPs, Private Equity International reported earlier. It's previous vehicle was $600 million and Fosun itself and Prudential were the only two investors.
For the new vehicle, one source close to the firm linked Temasek and Ontario Teachers’ Pension Plan as investors in the fund. Temasek declined to comment, while OTPP could not be reached by press time.
Fosun is probably the first significant fund by a private conglomerate [in China]. Many of the state-owned conglomerates have very large [private equity] funds and other groups have launched funds that are related to their main businesses, but this is a more financial vehicle.
However, he noted that many investors were strategically investing in the Fosun brand.
“Most of them are strategic investors, [which] are not only looking at financial returns, but they want access to certain other things [such as] access to co-investments or strategic relationship building,” he noted.
The vehicle will invest in overseas companies with potential to expand into the Chinese market or local businesses wanting to go abroad. The group joins other private equity firms seeking opportunity in the growing cross-border activity in China. Fosun, however, may be the first private enterprise to raise such a fund.
“Fosun is probably the first significant fund by a private conglomerate [in China]. Many of the state-owned conglomerates have very large [private equity] funds and other groups have launched funds that are related to their main businesses, but this is a more financial vehicle.”
The Fosun Group has also been actively buying assets abroad. In May, the firm acquired French resort operator Club Med in a deal worth about $735 million, shortly before acquiring Israel's Alma Lasers for $220 million from private equity firm TA Associates, PEI reported earlier.