A‐CAPITAL signs a landmark agreement with Beijing to establish the First China‐Outbound Private Equity Fund denominated in RMB (RMB Fund). A‐CAPITAL is the first European investment vehicle to sign an agreement with Beijing to establish a RMB Private Equity Fund. The Fund will jointly invest with Chinese enterprises into Europe for Technology, Market Access and Major Brands.
Beijing, China Private equity firm A‐CAPITAL signed on 11 March 2011, a memorandum of understanding (MoU) with the Beijing Municipal Bureau of Financial Work on the formation of a RMB‐denominated fund.
A‐CAPITAL, which already launched a Euro fund dedicated to China‐Europe cross‐border investments, will now benefit from the unique opportunity to raise capital in RMB from Chinese institutional and private investors. The Fund will be registered in Beijing and jointly invest with Chinese groups to pursue strategic equity investment opportunities in Europe.
A‐CAPITAL China Outbound RMB Fund will be entitled to preferential treatment from the Beijing Municipal Government, in accordance with its financial development strategies and policies. The Beijing Municipal Government will provide full support to A‐CAPITAL, in particular in the access to leading private and stateowned companies in Beijing, as well as to major institutional investors in the Capital City.
Huo Xuewen, Head of the Beijing Municipal Bureau of Financial Work, said, We welcome and support the establishment of A‐CAPITAL China Outbound RMB Fund in Beijing. We believe this sets the momentum to welcome more European private equity expertise in the Capital City, with Beijing playing a unique role in supporting Chinese companies going global.
André Loesekrug‐Pietri, Chairman and Managing Partner of A‐CAPITAL, said, We are delighted to have the strong support from the Beijing Municipal Government for this pioneering RMB‐denominated fund. Our objective is to establish an effective channel for Chinese equity investments into Europe and foster win‐win strategic and equity partnerships between leading European and Chinese groups. Through this, we will boost the development of Chinese and Beijing leading companies, and secure strong development in China of European groups.
The Fund will play an active role in the Chinese Go Global strategy and support the structural transformation strategy defined in the 12th 5 year plan. In signing this MoU with the Beijing Government, A‐CAPITAL will contribute to further strengthen Beijing as a major financial center and a leading city for the Private Equity industry in China.
Source: http://acapital.hk/
Photo credit: wenzday01 via Visual Hunt / CC BY-NC-ND
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