Berun, APCIG to form biggest green PE fund in China

BEIJING, June 3 (Reuters) - Beijing-based Berun Group has teamed up with Australian Private Capital Investment Group (APCIG) to form an environmental private equity fund that will be the largest of its kind in China, the firms' executives said on Tuesday.

The GPE Fund, standing for "green private equity fund", aims to raise $2 billion and will mostly look at investing in established firms focused on environmental protection, they said.

Private equity firms trying to break into the Chinese market in recent years have aimed at industrial and technology companies, but have found investments blocked or delayed by authorities who consider these sectors sensitive.

With Beijing pushing for greener development, some think it may be more open to investments in firms who make clean energy and the environment their business.

"The fund has an ultimate investment goal of $2 billion, the highest amount ever for a Chinese green fund," Wang Xiaodong, CEO of Berun Group, said.

The fund is near to meeting that target, he added.

Investors include groups and individuals from Australia, Europe, the Middle East and Japan, he said.

Wang said the GPE Fund had received all necessary governmental approvals and had already identified a few companies as investment targets. He declined to give their names.

"We think it is the right opportunity," said Bill Hanington, chairman and managing director of APCIG. ($=6.9258 yuan) (Reporting by Michael Wei; Editing by Quentin Bryar)