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PE fund scouts for more deals

By Wang Yu (China Daily)
Updated: 2007-11-03 09:58

The nation's first private equity (PE) fund is expected to make more investments in local companies after it sealed its debut deal in Tianjin on Friday.

"With our first-round capital of 6 billion yuan (US$804.3 million), we have made initial agreements with companies from the manufacturing, finance, energy and environmental sectors. Most are located around the Bohai Bay area, but some are from other regions," said Ma Jun, managing director of the Bohai Industrial Investment Fund Management Co Ltd.

Bohai Industrial Investment Fund, the nation's PE pioneer, bought a minority stake in Tianjin Pipe (Group) Corp on Friday for 1.5 billion yuan in cash. Tianjin Pipe is the country's largest maker of steel pipes for building oil pipelines.

"We will start raising funds again after we spend a certain percentage of the first round," Ma said.

Ma said the fund looks for companies that are in a solid industry segment, have sound business performance and plan to go public in the future.

The fund has also signed an agreement of intent with a coal producer, Yang said, without naming the firm.

Analysts said the PE firm is an important step for the country in developing industry funds and exploring new investment channels.


(For more biz stories, please visit Industry Updates)