The Carlyle Group Forms Strategic Relationship with Fosun Group; Will Jointly Form Shanghai-based RMB Fund, Share Best Practices and Co-invest Around the World

Shanghai – Global private equity firm The Carlyle Group today signed an agreement to establish a strategic relationship with Fosun Group, the largest privately-owned investment conglomerate in China. The two companies will jointly sponsor and manage an RMB fund that will invest in high growth companies. Carlyle and Fosun will also seek to raise capital from local Chinese investors, identify co-investment opportunities around the world that have a business nexus to China and share each other’s best practices and resources to better tap the growth potential presented by China.

With initial investment of US$100 million from Carlyle’s Asia Growth Fund and Fosun, the co-branded RMB fund will be able to immediately invest. Carlyle and Fosun will seek to raise capital from local Chinese investors for subsequent RMB funds.

Fosun already manages a number of funds for Chinese investors, and Carlyle earlier this year signed an MOU with the Beijing Municipal Bureau of Financial Work on the formation of an RMB-denominated fund in Beijing. That fund, which will invest alongside Carlyle Asia Partners, will focus on larger investments.

This is the second time for Carlyle and Fosun to join hands to pursue investment opportunities. In September 2009, Carlyle and Fosun jointly invested in Guangdong Yashili Group Co., Ltd., one of China’s largest infant formula companies.

David M. Rubenstein, Carlyle Co-founder and Managing Director, said, “China is one of the best places in the world to invest. Carlyle is committed to long-term, responsible and value-creating investment in the country. Fosun has an excellent track record in capturing China’s growth opportunities. By working with local partners like Fosun, we expect to make investments that benefit high growth companies and enhance the local private equity industry.”

Guo Guangchang, Founder and Chairman of Fosun Group, said: “Fosun’s unique acumen in identifying growth opportunities in China and adding value to its investments through management optimization augurs well with Carlyle’s unmatched expertise and strong track record in private equity investments around the world. I sincerely believe that Fosun’s experience in China and Carlyle’s excellent global team can create synergies that will ultimately translate into outstanding performances.”

Wayne Tsou, Managing Director and Head of Carlyle Asia Growth Partners, said, “The strategic relationship between Carlyle and Fosun is complementary and mutually beneficial. It will help expand our global investment capabilities and further our strategy of localizing our business in China.”

To date, Carlyle has invested more than US$2.5 billion in China in more than 40 deals. Carlyle was recently named the best private equity firm in Asia by The Asset magazine based in Hong Kong. Carlyle has a strong track record of investing in high growth companies through Carlyle Asia Growth Partners (CAGP). In 2009, CAGP invested in four high growth Chinese companies and three of its portfolio companies successfully completed initial public offerings (IPO) in Hong Kong and in New York.

Fosun has been investing in various industries that benefit from China’s rapid growth, including pharmaceuticals, property development, steel, mining, retail, services and strategic investments, with value of assets under management exceeding US$10 billion. Fosun’s rapid growth achieved in past 17 years was a result of its excellent management and unrivaled knowledge and connections in China. SinoPharm Holdings, the most recent IPO of Fosun’s past investments, for example, has delivered an internal rate of return in excess of 100%.

* * * * *

About Fosun Group

Fosun Group is the largest non-state-owned conglomerate in China. Its core businesses include pharmaceuticals, property development, steel, mining, retail, services and others. These businesses are being operated through subsidiaries and associates: Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SSE stock code: 600196), Shanghai Forte Land Co., Ltd. (SEHK stock code: 02337), Nanjing Steel United Co., Ltd., Tangshan Jianlong Industrial Co., Ltd., Hainan Mining United Co., Ltd., Anhui Jin-an Mining Co., Ltd., Beijing Huaxia Jianlong Mining Technology Co., Ltd., Shanxi Coking Coal Group Wulin Coal Coke Development Co., Ltd. and Shanghai Yuyuan Tourist Mart Co., Ltd. (SSE stock code: 600655). All these companies are leading players in their respective industries and have very promising future. Since listing, Fosun has speeded up the progress of its strategic investments and invested in a number of pre-IPO and listed projects.

# # #