Conglomerate says it is capable of managing assets worth $150b
NEW YORK / BEIJING - One of the largest Chinese private conglomerates, Shanghai Fosun High Technology (Group) Co Ltd (Fosun Group), is capable of managing assets of more than 1 trillion yuan ($150 billion) with its private equity platforms, said a top company official.
The company will also look for more investment opportunities overseas, as part of its efforts to further global expansion, said Guo Guangchang, chairman of Fosun.
"We have to actively push forward the asset management business because we have seen a lot of opportunities as we build our global investment platform and our management capability is also improving," Guo said in an interview with China Daily in New York.
His remarks came after the company teamed up with US insurance group Prudential Financial Inc to form a $600 million private-equity fund in January. The dollar-denominated fund, in which Prudential Financial will invest $500 million and Fosun the rest, will focus on Chinese listed overseas companies, foreign companies with Chinese operations and domestic enterprises.
Fosun has four private-equity companies, including a 50-50 joint venture, established last February with US buyout giant Carlyle Group. The joint venture focuses on companies with "high-growth" and is "expanding both at home and abroad", Brian Zhou, Carlyle's China spokesman, said in an interview with China Daily last year.
Fosun is trying to transform itself from an industry group into an investment group and, at the same time, expand its global investments, said Fosun Chief Executive Officer and Vice-Chairman Liang Xinjun, according to a report in the Economic Observer. It will make more investments this year in luxury consumer goods and the food sectors overseas, Guo said last month.
Guo said that Fosun hopes to connect fast-growing momentum in China with global resources. Under this philosophy, the company bought nearly 10 percent of the French resort group Club Mediterranee SA last year and has been developing operations in high-end resorts in China.
"Fosun highly appreciates value investment and we will use this approach, taken by Warren Buffett, more," said Guo, who is an admirer of the billionaire investor.
Last year, the company made 24 investments with its private-equity funds, ranging from finance and machinery to the Internet, according to a financial report by Hong Kong-listed Fosun International Ltd, the parent of Fosun Group.
The group covers a wide range of industries, including pharmaceuticals, property, steel, mining, retail and finance.
