First Eastern and Blackstone announce renminbi private equity funds

The First Eastern Investment Group announced yesterday that it has become the first international private equity group to incorporate a Shanghai subsidiary. This follows an announcement by the Blackstone Group on Friday that it will establish its first regional, renminbi-denominated private equity fund in Shanghai Pudong.

The government of Shanghai launched an initiative earlier this year to attract global private equity firms to the city. First Eastern said it plans to manage Rmb6 billion $850 million of assets, and to invest in regional developments and local environment projects. First Eastern plans to raise up to three funds, said sources close to the development, which will all be managed from Shanghai.

First...