Economy-Finance

China sovereign fund to launch $4 bln fund: source

April 3rd, 2008 | by admin |

NEW YORK (Reuters) - China Investment Corp (CIC), the country’s $200 billion sovereign wealth fund, has signed a deal with J.C. Flowers & Co, to launch a $4 billion private equity fund to focus on investments in U.S. financial assets despite increasing worries over the snowballing credit crisis, a source briefed on the situation said on Thursday.

Beijing-based CIC will become a limited partner of the new private equity fund, in which CIC will provide about 80 percent of contributions to the fund. New York-based private equity firm J.C. Flowers, run by former Goldman Sachs banker Christopher Flowers, will offer about 10 percent of the money to the fund, said the source who declined to be identified as he was not authorized to speak to the media.

There will be also several other general partners who will cover about 10 percent of capital in the fund, the source said, adding general partners have already been selected.

Representatives of CIC and J.C. Flowers could not immediately be reached for comment.

(Reporting by George Chen; Editing by Tim Dobbyn)

China sovereign fund to launch $4 bln fund -source

April 3rd, 2008 | by admin |

NEW YORK, April 3 (Reuters) - China Investment Corp (CIC),the country’s $200 billion sovereign wealth fund, has signed adeal with J.C. Flowers & Co, to launch a $4 billion privateequity fund to focus on investments in U.S. financial assetsdespite increasing worries over the snowballing credit crisis,a source briefed on the situation said on Thursday.

Beijing-based CIC will become a limited partner of the newprivate equity fund, in which CIC will provide about 80 percentof contributions to the fund. New York-based private equityfirm J.C. Flowers, run by former Goldman Sachs bankerChristopher Flowers, will offer about 10 percent of the moneyto the fund, said the source who declined to be identified ashe was not authorized to speak to the media.

There will be also several other general partners who willcover about 10 percent of capital in the fund, the source said,adding general partners have already been selected.

Representatives of CIC and J.C. Flowers could notimmediately be reached for comment. (Reporting by George Chen; Editing by Tim Dobbyn)