US Private Equity Groups in China Talks -- Carlyle, KKR, and TPG

[antigop]

http://www.ft.com/cms/s/0/98762e4c-8653-11dc-b00e-0000779fd2ac.html

Three of the biggest US private equity firms have each held preliminary talks about selling a minority stake to China’s giant Social Security Fund, people familiar with the negotiations say.

The talks suggest that the number of official Chinese entities looking to make investments in foreign financial firms is poised to grow. Bear Stearns of the US and China’s Citic Securities last week revealed plans to invest $1bn in each other.


China’s Social Security Fund, which had Rmb460bn ($61.5bn) in assets at the end of June, held discussions during the summer with Carlyle, KKR and TPG, said the people familiar with the talks. Negotiations focused on the possibility that the SSF would take a stake of up to 9.9 per cent in one of the US firms.

Carlyle has been the most aggressive in seeking outside investors. The California Public Employees’ Retirement System (Calpers) and the Mubadala arm of the Abu Dhabi government have small stakes in Carlyle. The firm also hopes to sell small stakes in itself to investors in Asia and in Europe.

[Demeter]

1. That's One Way to Right the Balance of Payments!

Let Carlyle rob the Chinese blind.