Fosun Raising A Fund to Invest Globally

Last week I let Mingtiandi’s readers know that I would be having lunch with Fosun’s CEO Liang Xinjun, and I apologise for not updating you sooner on what this China business mogul had to say.

The reason that I didn’t feel a rush to update you on my little talk with one of China’s real estate billionaires  (Fosun in the parent company of real estate developer Forte) is that he had nothing to say about real estate – and real estate is usually our territory here on Mingtiandi.

Instead of discussing bricks and mortar, Mr Liang was much more interested in holding forth on the investment opportunities available in China, and how his company is looking for partners to help take advantage of these potential deals.

Although he would not come right out and say it, the future of Fosun seems to be diversifying, and the company’s thrust appears to be looking for strategic investment partners to invest in global brands who wish to expand their businesses in China. Liang mentioned that the company already has partnerships with financial firms such as the Carlyle Group and that they have made investments in companies such as fashion retailer Folli Folli, which has moved into China aggressively in the last several years.

Although unstated during our conversation, implicit in Liang’s message was Fosun would use its new fund (or funds) to invest in global companies that need to expand their China footprint, and that Fosun could then add value to this investment by making available their contacts and expertise within Chinese markets.

Ostensibly, investors who jump into Fosun’s funds then, would get an opportunity to get involved with investments in global companies that are poised for growth in mainland China.

From our talk, Liang seemed to indicate that Fosun was open to investments in all sectors, and in addition to the groups deal with Folli Folli, also mentioned their investment in Club Med, and how this global vacation interest had improved its performance in China since Fosun took an interest.

Finally, for all of you budding investors out there who would like an investment tip from Mr Liang, who currently ranks #132 on Forbes list of Chinese billionaires, this CEO differentiated Fosun’s investment strategy from other companies by pointing out two distinct factors that Fosun insists upon in each deal.

1. They only buy “good” things
2. Fosun only buys at low prices.

I will be sure to share that one with my broker next time the portfolio starts to sag a bit.