China Private Equity’s Search for Dollars

In News | on 11.08.12 | by | Comments ( 0 )

China’s homegrown private-equity firms are looking for money overseas, in part to diversify their investor base and expand their brands abroad. Moreover, raising money domestically has become tougher amid a slowing economy.

Fund managers so far have only raised $1.3 billion while their foreign counterparts have raised $3.6 billion.
 
Private-equity firms want to raise dollars because that lets them more easily invest in Chinese companies that want to eventually list on U.S. stock exchanges or make acquisitions overseas without dealing with currency restrictions.
 
Most private-equity money managers in China, however, are more accustomed to answering to a different investor base: rich Chinese individuals as well as state-affiliated entities that tend to be less rigorous in their research on different funds, industry experts say.
 
Source: The Wall Street Journal

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