China Life recieves PE investment license - report

Citing the Herald, Reuters reported that China Life is the first Chinese insurance company to receive such a license. It has assembled a 30-strong team to scout investments and, as the world's largest insurer by market capitalization, is expected to become a force in the investment landscape.

Chinese insurers are permitted to invest up to 5% of their total assets in private equity, and 10% in real estate, but until now haven't been able to raise their own funds.

The country's insurance sector has long been a target for private equity. Earlier this month, The Carlyle Group made its third sell-down in China Pacific Insurance (CPIC) in the space of seven months, raising around $990 million. The $3.6 billion accumulated from the three sell-downs has put the private equity firm on course for one of its largest ever cash exits globally.

In April, Goldman Sachs also acquired a 12.02% stake in Taikang Life Insurance from French insurance giant AXA, for an estimated $925 million.

While indirect, China Life has been involved in private equity transactions in the past. In September of last year, the insurer invested in the Suzhou Venture Capital Fund, an renminbi-denominated vehicle set up by the China Development Bank (CDB) and the National Social Security Fund (NSSF) in conjuction with a Chinese VC firm.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Financing
• The Carlyle Group
• Goldman Sachs