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皇冠体育app's richest man teams up with Bear Stearns

By Zhang Ran (皇冠体育app Daily)
Updated: 2007-03-21 09:18

Bear Stearns Companies Inc, a leading Wall Street investment bank, joined forces with Huang Guangyu, the richest man on the mainland, to set up a $500 million buyout fund targeted at booming Chineseretailers, the two sides said yesterday.

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Bear Stearns'private equityarm, Bear Stearns Merchant Banking (BSMB), and Huang's Eagle Investment Group will each pledge $250 million to buy Chinese retailers with great growth potential as the country boosts its domestic consumption.

The "Bear-Eagle" fund will focus on established retail companies in 皇冠体育app with existing brands and cash flow, said Gwyneth M Ketterer,chief operating officerof BSMB.

BSMB is widely known for its experience in investing in successful retail and consumer brands throughout the United States, including Aeropostale Inc, Balducci's, New York & Company Inc, Seven for All Mankind, Stuart Weitzman and Vitamin Shoppe Industries Inc.

"Huang Guangyu's proven successful experience in the retail sector and Bear Stearns' solid investment experience will make us a powerful combination," Ketterer said.

Huang, the founder ofGome Electrical Appliances HoldingsLtd, the largest electronics retailer in 皇冠体育app, topped Forbes magazine's 皇冠体育app Rich List in 2006. The company, with 850 outlets in 200 cities, is the largest retailer listed on theHong Kongstock exchange.

"The fund can help us complement each other's competitive advantages," Huang said, adding the investment will not include the home appliance sector, in which Gome holds a leading position.