Future watch

Should our children learn Mandarin? At least Blackstone, Carlyle Group and buyout firm Kohlberg Kravis Roberts think so...

Chinese private equity funds are emerging in big cities as China promulgates new regulations aimed at creating a homegrown private equity industry, one that Beijing hopes will strengthen the country’s capital markets and fuel private sector growth in an economy overly dependent on government investment. Industry experts say that to compete with China’s growing funds, global firms like Blackstone, the Carlyle Group and even the buyout firm Kohlberg Kravis Roberts are scrambling to form funds denominated in renminbi. Analysts say it has suddenly become the currency of choice for private equity firms operating in China.