China Development Bank to buy stakes in U.S. private equity fund

The China Development Bank (CDB), one of China's three policy banks, said on Friday that the China Development Bank Capital Co., Ltd., a wholly-owned subsidiary of the CDB, is planning to buy a minority stake in a leading U.S. private equity fund, TPG Capital.

The stake purchase will allow CDB Capital and the California-based TPG to establish a cooperative partnership, the said CDB in a press release.

The bank did not reveal the exact size of the stake to be purchased.

The two sides have agreed on the deal, but are still waiting for regulatory approvals, it said.

Established in August 2009, CDB Capital has focused on private equity, direct investment and investment consulting. Buying TPG's shares will help the company enhance its capability to directly invest, the press release said.

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