Carlyle raises half of 5bn yuan fund

The fund closing - made possible with commitments from Beijing State-owned Capital Operation (BSCOMC), the Management Center and Beijing Equity Investment Development Fund and other state-owned enterprises coincides with a new investment management joint venture, Carlyle Investment Management.

The buy-out shop owns 80 percent of the new management venture, which will advise the yuan fund, and the BSCOMC the remainder.

The recently closed local currency vehicle will invest alongside Carlyle Asia Partners, the private equity firm's Asian arm that manages $5bn across three US dollar funds, and will be entitled to preferential policies offered by Beijing's local government.

Carlyle competitor Blackstone is said to have reached the halfway mark with its own debut 5bn yuan fund, as private equity's big names continue to train their eyes on China.