Fosun plans new fund to finance overseas investments

Chairman Guo Guangchang told local media during the annual session of the National People's Congress that he is working to invest in companies with advanced technology in Germany and Britain, as the European economic turmoil has brought valuations down in the region.

He also added that Japan's tourism and culture sector, which was badly hurt by last year's tsunami, is becoming more interesting thanks to the influx of Chinese tourists.

Although all of Fosun's existing outbound investments involve stakes of less than 10%, the company will look for stakes of 10% to 30% for future overseas acquisitions. "This year will see quite a few overseas investments by Fosun. We seek to improve our investment structure and its global distribution," Guo told China Daily.

Gou said target companies will be those that have synergy with Fosun's existing business and a desire to expand into the Chinese market.

Founded in 1992, Fosun has reportedly invested in more than 100 companies. Last year, the company formed a $600 million vehicle with Prudential Financial to invest in domestic companies as well as revitalize struggling Western companies for business in China. Prudential invested $500 million in the fund and acts as the LP, while Fosun put in $100 million and operates as the GP.

Last May, Fosun paid over EUR84 million ($120 million) for Folli Follie Group, a Greek jewelry and luxury goods retailer which has significant recognition among Chinese luxury buyers. Later, in June, Fosun also bought 7.1% of holiday resort Club Mediterranee alongside A Capital.

In addition, the company has launched two renminbi-denominated funds. In March 2010, Fosun established a strategic relationship with Carlyle to launch a RMB630 million ($100 million) fund to invest in high growth Chinese companies. One year later, Fosun partnered with Nanjing Iron & Steel to create a RMB1.5 billion vehicle which targets real estate, medical and mining companies.

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• Topics
• Greater China
• Investments
• Fosun Group
• Outbound investment
• China
• Japan