One Equity Partners, the private equity arm of JPMorgan, has agreed to invest $200 million in China as part of its partnership with Beijing Capital Investment, the venture arm of Chinese conglomerate Beijing Capital Group.
According to a statement, the two parties will collaborate in identifying M&A opportunities.One Equity Partners will also invest in the portfolio companies of Beijing Capital Investment, which is currently in the market for a $150 million fund.
The fund has attracted investors from the US, Latin America, the Middle East, Hong Kong and China, the statement added.
In January last year, One Equity Partners made its maiden Chinese deal by way of a $69.6 million investment for a 54 percent stake in Guangzhou-based drug company China Medicine.
One Equity often partners with local firms in its target markets. In Turkey, it joined forces with Rhea Girisim, the listed private equity fund of Istanbul-based Rhea Asset Management, in October last year to purchase a majority stake in Turkish telecommunications equipment provider, Netas. The consortium paid about $84 million to Nortel Networks International Finance, Netas’ previous owner.
Last week, a filing to the US Securities and Exchange Commission showed that JPMorgan was targeting $750 million for an Asia fund, which has collected $21.5 million as of 14 June.
The fund is being raised by JPMorgan Asset Management’s private equity group that runs direct investment and private equity fund of funds, a separate division from One Equity Partners.