Monday April 7, 12:13 AM
China Investment Corp plans 4 bln usd fund for US financial assets - report
BEIJING (XFN-ASIA) - Sovereign (LSE: SOGP.L - news) wealth fund China Investment Corp (CIC (Paris: FR0005025004 - news) ) has signed a deal with JC Flowers & Co to launch a 4 bln private equity fund focused on US financial assets, the official China Daily reported, citing sources close to the matter.
CIC will become a limited partner in the new private equity fund, for which it will provide about 80 pct of the capital, the report said.
US private equity firm JC Flowers, run by former Goldman Sachs (NYSE: GS - news) banker Christopher Flowers, will put up about 10 pct of the funds while other general partners will provide the remainder.
The tieup is the first private equity fund to be launched by CIC since it was established by the government in late 2007 with 200 bln usd in capital. Its mission is to obtain better returns on China's foreign exchange reserve holdings.
CIC is also looking for more than a dozen global asset managers for both equity and fixed-income investments, the report said.
CIC invited both domestic and global fund managers in December to apply to run four different stock portfolios and a final list of such appointments, including several US asset management houses, could be announced in the next two months.
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