Carlyle Group LP said on Tuesday it would form a yuan-denominated private-equity fund with the Beijing municipal government to finance the development of growth enterprises in China.
The company said it had signed a memorandum of understanding with the Beijing Municipal Bureau of Financial Work to register the fund in the capital city.
It would help promote corporate development, industry restructuring, and the private equity market in the region. It would also enjoy preferential treatments of the Beijing government, the company said.
The Washington-based fund oversees assets worth $87.6 billion by the end of September. It has invested more than $2.5 billion in China in over 40 projects.
The move came after Blackstone Group LP became the first foreign private-equity firm to set up Renminbi fund in Shanghai in August, as the Chinese government had vowed to strengthen private equity industry and the capital market.
