Sunday, June 17, 2012

Asian PEU News

Reuters reported:

CHINA'S NATIONAL Social Security Fund will increase investment in private equity funds by more than 50 percent in 2012 as China attempts to improve investment returns from its pension system, the official Shanghai Securities Journal reported on Monday.
How might private equity help the people?
CHINA'S BIGGEST milk producer by revenue, Inner Mongolia Yili Industrial Group Co, has recalled baby formula tainted with "unusual" levels of mercury in the latest safety scare for the country's dairy sector.

The Carlyle Group invested in Yashili,  a Chinese tainted milk producer.  Carlyle "cleaned up" the melamine and took the company public.  Will a PEU do likewise for Mongolia Yili?

What might Chinese PEUs do for the rest of the world?

THE NEXT wave of private investment in Africa is likely to come from Asian funds, lured by sustained high growth rates and increasing economic and political stability, according to the co-head of one of the continent's top private equity groups.
How might China's "dice roll" quality manifest in their private equity expansion? As for economic stability, one news post raised questions:

BLACKROCK INC said it has received several proposals to buy or help restructure its Australian unlisted property trust which has assets of A$468 million ($464.75 million) but is short of funds to meet redemption demands.

Short of redemption demands?  Do I smell a PEU run? 

Update 6-21-12:  China's longstanding abysmal quality showed up in food.  Carlyle affiliate Oriental Trading imported cadmium tainted children's toys from China.