Bocom International to raise $500M for China private-equity fund

Bocom International is seeking to raise as much as $500 million in its first private-equity fund focusing on Hong Kong and China.

The fund will seek to raise between $300 million and $500 million, and the first round of fund-raising was completed this month, a Bloomberg report stated.

The information was according to an e-mailed statement issued by Bocom International, the investment bank unit of Bank of Communications Co. 

Bocom International aims to make initial investments of between $10 million and $50 million in each project, it said.

Bocom’s plan comes after Citic Capital Holdings Ltd., 40 percent owned by China’s sovereign wealth fund, said this week it raised $925 million in its second China buyout fund focusing on consumer and manufacturing industries.

The Chinese government is building its own private-equity industry, and China-focused funds have acquired stakes in companies ranging from a crane maker to a milk supplier and real estate.

View full report in Bloomberg.