Berun Group, a Beijing-based financial service provider, and the Australian Private Capital Investment Group are raising a $2 billion (€1.3 billion) private equity fund to invest in China, according to a Reuters report.
The GPE Fund, which stands for green private equity, will invest in companies focussed on environmental protection.
“The fund has an ultimate investment goal of $2 billion, the highest amount ever for a Chinese green fund,” Wang Xiaodong, Berun chief executive, said. He added that investors in the fund include high net worth individuals and institutions from Australia, Europe, the Middle East and Japan.
The fund has been approved by the Chinese authorities, providing another instance of the government’s increasing support of policies and initiatives that promote clean energy and environment sustainability.
Chung Min Pang, a managing partner at Aureos in China, told PEO earlier this year that there is “clear policy support” from Chinese authorities for initiatives promoting clean energy to meet the country’s energy requirements, and for environmental reasons.
Fundraising for the GPE Fund is nearing completion, Reuters reported.