Fosun, China’s Largest Private Conglomerate, Preparing Rollout Of Massive Global Private Equity Fund

Fosun International Ltd. (HK:0656), the largest privately owned conglomerate in Mainland China that was founded in 1992 by four university students, is a month away from unleashing its private equity fund in the global marketplace, backed largely by about 10 non-Chinese investors from North American, the Middle East and Southeast Asia.

The fund, called the Chinese Momentum Fund, has raised $300 million but hopes to boost that to $1 billion, and it claims Fortune Global 500 member Prudential Financial Inc. (NYSE:PRU) as a major investor, according to Dow Jones Newswires. Prudential already has a relationship with Fosun going back to 2011 when it established a dollar denominated fund with the Shanghai-based conglomerate in 2011.

Europe is an obvious target for the fund, considering the bargain available there amid its sovereign debt crisis. It will also help foreign multinationals expand their businesses in China.

Here’s what you need to know about Fosun:

- The chairman and co-founder Guo Guangchang, thought to be 46 years old, has been called the Warren Buffet of China by publications including the Financial Times. He has an estimated net worth of $2.7 billion.

- Fosun’s industrial holdings in China includes Nanjing Iron and Steel Union Company Limited, one of the country’s largest steel foundries.

- The conglomerate has invested in Paris' Club Mediterranee S.A. (CU.FR), an all-inclusive resort operator.

- U.S. buyout giant Carlyle Group LP, one of the world’s largest private investment groups, partnered up with Fosun in 2010 with a yuan-denominated investment fund in China.