Carlyle Speaks Chinese

An announcement this morning from The Carlyle Group is more evidence that the biggest players in private equity and venture capital are upping the ante in the world’s largest nation.

The private equity behemoth with $90.5 billion under management across 67 funds around the world has launched web sites aimed squarely at China, Taiwan and Hong Kong. The sites are available in simplified Chinese characters and in traditional Chinese.

“Over the past decade, Carlyle has established one of the most local and experienced teams in China. Just as we are committed to local talent, we are committed to strong local communication with portfolio partners, government, the media and the wider community,” said Wayne Tsou, Managing Director and Head of Carlyle Asia Growth Partners, in a release.

If the web sites are the most recent indication of Carlyle’s strategy of growth in China, more important indicators are the $3 billion the company has invested in 50 deals in China. And then there’s the $350 million Chinese currency fund Carlyle has raised.

Carlyle isn’t the only player with a sharp eye on China, just one of the biggest.

Venture capitalists are also placing bets in China, and placing them in Chinese currency.

DCM, a Sand Hill Road firm, recently raised a $21 million fund in Chinese currency. Venture capitalists generally have smaller funds than their counterparts in private equity, and invest in earlier stage companies, a high-risk, high-reward strategy.

But just having a fund designated in Chinese currency is a coup, DCM co-founder David Chao told Portfolio.com.

It can take six to twelve months to start such a fund designated in Chinese currency. A firm has to have sponsorship from a local government, and needs to have the right local partner.

For Carlyle, it’s Chinese currency fund and the web sites it’s launched are part of a long-term commitment to China.

“We are committed to long-term, responsible and value-creating investment in China; the launch of a dedicated Chinese website is an important means to achieve this. China is a key focus for Carlyle and it is vital that we enable a flow of communication with all Chinese stakeholders,” said X.D. Yang, Managing Director and Head of Carlyle Asia Partners.