A CNY5 billion yuan-denominated fund was co-established in Shanghai by private investment company TPG Capital, the Shanghai municipal government and the Pudong new area government to invest in China’s consumer, retail, financial and health care industries and focus on medium- to large-sized companies nationwide. Fund raising would start in the next few months. Last year, Blackstone Group also set up a CNY5 billion fund with the Shanghai government, while Carlyle Group received approval this March to form a USD100 million fund with the Shanghai Fosun High Technology (Group) Co, a privately-owned company with businesses spanning steel, mining and real estate. TPG Capital invested in Shenzhen Development Co in 1994 and its portfolio includes Lenovo Group and Daphne International Holding, a shoe retailer. TPG Capital has 40 staff members focused on Chinese investments. China has become TPG Capital’s second-largest investment market outside the U.S., accounting for 10% of its total investments and more than 10% of its global profits.