Haitong to Launch Buyout Funds

The Wall Street Journal 4 June 2013
SHANGHAI—Haitong Securities Co.’s private-equity arm plans to launch its first yuan- and dollar-denominated funds focused on buyouts, aiming to raise more than $526 million to take controlling stakes in consumer goods and services companies.
Chinese brokerage firms, which entered the private-equity market more than five years ago, are becoming increasingly active as they seek to find opportunities in domestic companies that continue to see double-digit annual growth. Haitong’s decision to raise the funds comes after China’s largest brokerage firm, Citic Securities Co., 600030.SH -1.24% sought to raise its first buyout fund last year.
Haitong already has a number of other private-equity funds, but those focus on minority stakes.
Haitong Capital Investment Co. aims to raise at least two billion yuan ($326 million) by the end of this year for the yuan fund and is targeting $200 million for its first dollar-denominated fund, according to two people with knowledge of the situation.
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