NEW YORK - Capitalizing on China's growth, the Shanghai-based Fosun Group is embarking on a series of global expansion moves to meet rising consumer demand in China, one of which involves a private equity fund with a major United States insurer.

Fosun Group Chairman Guo Guangchang, who on Monday announced a $600 million joint investment venture with Prudential, said the move will increase Fosun's global capabilities.

Fosun's partnership with Prudential represents the latest move by the largest privately owned conglomerate in China. Prudential agreed to invest $500 million in a fund called the Pramerica-Fosun China Opportunity Fund that will be run by Fosun, which will invest $100 million.

While the investment fund allows Fosun to focus on public and private companies based in China or foreign companies with operations in China, it gives Prudential leverage in China, said Mark Grier, vice-chairman of Prudential.

Since last year, Fosun set it sights on global expansion. In March 2010, Fosun announced a partnership to invest in Chinese equities with US-based Carlyle Fund, the second largest private equity firm in the world. In June 2010, the company acquired a 9.5-percent stake in the French resort group Club Mediterranee SA.

Finding strategic partners overseas will be the trend for Fosun, Guo said.

"Fosun positions itself as an expert in investment in China. From my perspective, even if you are an expert, it is not possible to create value for the business without building up a global capacity. A company needs to have a global platform in order to further develop or expand its operations," Guo told China Daily.

"By partnering with the world's best companies, we are building up world-class investment brand name with a global vision while leveraging on the growth momentum of China's economy," Guo said.

He emphasized that it is not difficult to find investment opportunities in China where a phenomenal economic growth has filled the country with vast opportunities. The main thing is to find the right global partners who will focus on China.

Grier said he believes the joint venture will allow Prudential to have "an effective presence in China with a quality partner".

"We are in this for a long run. A good business partnership requires commitment and a long-term view. We have a deep respect of what Fosun has done in China. The company is a great fit to us. As the middle class group in China gets larger, consumer demand will only go up. We believe our presence in China will be very effective," Grier said.

Prudential has a 33-percent stake in China's Everbright Securities Co in a fund management joint venture.

Liang Xinjun, Fosun vice-chairman, said he believes this is the best time to invest in China.

"China's growth momentum will continue in the next five years. I believe China will become the largest or second largest investment market in 5 to 10 years' time. I hope people will invest in China, taking advantage of China's growth," Liang said.

China Daily