Blackstone raises half its $781m RMB-denominated fund

The joint venture vehicle, known as Shanghai Blackstone Equity Investment Partnership, reached a first close was in April, having received commitments from Chinese government entities, state-owned enterprises, and large domestic corporations. The National Council for Social Security Fund (NSSF), China's state pension fund, Shanghai Jinfeng Investment, Shanghai Ace and Shanghai Lujiazui Financial Development, are reportedly among the LPs.

Sotirhos admitted that the fundraising environment in China is challenging, with "thousands" of renminbi-denominated vehicles in the market right now, The Wall Street Journal reported. The fund will focus on investments in Pudong New Area and surrounding areas of Shanghai.

Blackstone was the first major buyout firm to announce a renminbi fund in August 2009. It was followed by the likes of The Carlyle Group, TPG Capital, Goldman Sachs and Morgan Stanley. All these players have struggled to raise capital in the face of competition from ambitious local players.

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• Topics
• Greater China
• Renminbi fund
• Fundraising
• China
• RMB fund
• The Blackstone Group
• The Carlyle Group
• Fundraising
• TPG Capital
• Goldman Sachs
• Morgan Stanley