Fosun forms strategic collaboration with Denmark's Axcel

The partnership will see Fosun facilitate Axcel in deal-sourcing in China, where personal relationships always play a crucial role. Fosun has also expressed interests in co-investing with Axcel regarding companies with exposure to the Chinese market.

Xinjun Liang, CEO of Fosun, said in a press release that Fosun's expertise in identifying business opportunities in China will contribute to bring a new model of global collaboration which combines China's growth momentum with global resources. "With Axcel's strong track record in private equity investments around Europe, I sincerely believe that Fosun and Axcel can create synergies that will show the full potential of this new model."

Pia Olsen Dyhr, Denmark's minister for trade and investment, added that strong Danish industries like life science and cleantech have attracted Fosun's attention.

China is Denmark's eighth largest export market and is expected to take a fifth place in 2015. As of March 2012, there were 331 Danish companies present in China. At the same time, Denmark is currently China's second-largest source of foreign investment in Northern Europe and its third-largest trading partner in the region. Exports to China amounted to DKK15 billion ($2.5 billion) last year, with pharmaceuticals, machines and food contributing leading the crowd. Danish imports from China were DKK36 billion.

"Our experience is that you need to treat China as your second home market. Moreover, local adaptation is necessary - you cannot treat China as one market," said Christian Frigast, managing partner at Axcel. "These simple facts make it very important for us as a medium sized fund to have a competent partner in China."

Fosun has been very active in overseas investments in the past 2-3 years. In 2010, the Chinese investment manager acquired French premium leisure resort chain hotel group Club Med alongside A Capital. One year later, it invested in Folli Follie, a globally fashion retail group.

Earlier this month, Xinjun Liang told AVCJ that Fosun secured RMB13.3 billion ($2 billion) of committed capital across six funds in 2011, of which RMB2.7 billion was drawn from Fosun's balance sheet.

It also partnered with Carlyle in 2010 to launch a $100 million fund with each invested $50 million into the fund. The two parties will consider launching other renminbi-denominated or US dollar funds together after our first vehicle matures and gets fully invested.

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

• Topics
• Greater China
• Europe
• China
• Europe
• Outbound investment
• Fosun Group
• The Carlyle Group