China-based conglomerate Fosun Group has jointly launched a RMB 10bn ($1.6bn) fund of funds with the Zhejiang provincial government, China Money Network reported today.
The fund of funds, denominated in renminbi, will focus public and private companies in Zhejiang and support their expansion into other countries and acquisition of foreign assets. Fosun and Zheijang also expect to assist foreign businesses to expand into Greater China.
The two partners are initially looking to reach a first close of RMB 8bn, and hope to secure the remaining capital by the end of 2015.
In April 2015, the fund made its first investment, purchasing a majority stake in Canada-based entertainment company Cirque du Soleil, alongside fellow backer TPG Capital. Cirque du Soleil now plans to set up a permanent show in Zhejiang’s capital Hangzhou by 2018.
The fund recently also injected $78.4m into a $628m healthcare fund in Shaoxing, which will focus on businesses in the environmental protection sector.