China – Global private equity firm The Carlyle Group today signed a memorandum of understanding (MOU) with the Beijing Municipal Bureau of Financial Work on the formation of an RMB-denominated fund in Beijing. The Carlyle Asia Partners RMB Fund will be registered in Beijing. The Beijing Municipal Government will provide full support to the RMB Fund. Once established, the new RMB Fund will invest alongside Carlyle Asia Partners and pursue independent investments in larger growth companies.

The Carlyle Asia Partners RMB Fund will be entitled to preferential treatment from the Beijing Municipal Government, in accordance with its development policies for the city’s finance and equity investment industry.

Daniel A. D’Aniello, Founding Partner and Managing Director of The Carlyle Group, said, “We are pleased to have the Beijing Municipal Government’s support for this RMB-denominated fund. Carlyle is committed to long-term, responsible and value-creating investment in China. The Carlyle Asia Partners RMB Fund will help expand our investment capabilities in Beijing and across China, further Carlyle’s strategy of localizing our franchise in China and contribute to the healthy development of the local private equity industry.”

Huo Xuewen, Head of the Beijing Municipal Bureau of Financial Work, said, “We welcome and support the establishment of Carlyle’s RMB fund in Beijing. We believe that with the help of the unique advantages Beijing enjoys as the capital city, the Carlyle Asia Partners RMB Fund and other local and international private equity funds will be able to achieve ideal development and play an active role in the steady and fast growth of Beijing’s economy.”

The Carlyle Asia Partners RMB Fund will raise RMB-denominated capital and make equity investments in larger growth companies in China. To be registered in Beijing, the Fund is expected to play an important role in the development of local enterprises, the structural transformation of local industry and the enhancement of the equity investment fund industry in Beijing and China.

China has become one of most attractive investment destinations in the world for Carlyle because of its fast-growing economy. To date, Carlyle has invested more than US$2.5 billion in China in more than 40 deals. Carlyle was recently named the best private equity firm in Asia by The Asset magazine based in Hong Kong.

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