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Forex - China Private Equity’s Search for Dollars

Posted by Forexsq 197 days ago (http://blogs.wsj.com)

China’s homegrown private-equity firms are looking for money overseas, in part to diversify their investor base and expand their brands abroad. Moreover, raising money domestically has become tougher amid a slowing economy.

or all but the biggest names, however, winning over Western investors hasn’t been easy.

Hao Wu, chief executive of Sino-Century China Private Equity Partners, said the process for Chinese money managers to get overseas money can be “very long” because Western investors aren’t familiar with local names.

“We’re not like KKR KKR -4.35%, Carlyle, TPG, Blackstone, who are household names,” he said. Shanghai-based Sino-Century started raising a $350 million fund last year, and expects to close it in the first quarter next year.

Domestic-based private-equity fund managers raised about $12 billion in dollar-denominated funds in 2011 aimed at Chinese investments, according to data by research firm Preqin. forex