Monday, May 20, 2013
By Chao Deng
SHANGHAI--Chinese conglomerate Fosun International Ltd. (00656.HK) is raising a $1 billion private-equity fund that will invest in Europe and international companies seeking to expand in China, according to a person familiar with the situation.
The company, which has made investments in companies like French resort operator Club Mediterranee S.A. (CU.FR), will have the first close of the China Momentum Fund next month, by which time it would have raised $300 million, according to the person. When a fund has its first close, it can start making investments.
Investors in the fund will be limited to around 10 and will largely be pension funds, high-net worth families and institutional investors outside of China, including in the U.S., Canada, Southeast Asia, Taiwan and the Middle East, that can provide strategic resources on top of capital, he said.
Prudential Financial Inc. (PRU), which established a $600 million U.S. dollar-denominated fund with Fosun in 2011, will also invest in the new fund. The U.S. insurer will continue to help grow the Chinese company's private-equity investments with its overseas network, according to the person.
Prudential declined to comment.
Fosun will continue to look for targets in Europe, where valuations remain depressed because of the region's debt crisis, as well as other firms in other regions that Fosun can help expand in China.
Write to Chao Deng at chao.deng@wsj.com
(END) Dow Jones Newswires
20-05-13 0723GMT
