HONG KONG, Aug 28 (Reuters) - Chinese private equity firm Trustar Capital is planning to raise a so-called continuation fund that would allow it to sell down its stake in McDonald's China, two sources with knowledge of the matter said.
That plan would be achieved by Trustar, formerly known as CITIC Capital, transferring some equity interest in McDonald's China from its private equity (PE) fund into the continuation fund, a new investment vehicle that would manage the asset.
Currently, Trustar owns 42% of the business, while Carlyle and CITIC own 28% and 10% respectively, according to McDonald's China.
Carlyle has also been considering options for its stake in McDonald's China, including setting up a continuation fund, Reuters has reported.
"McDonald's China will continue to leverage the capital and other resources from CITIC (Trustar), Carlyle, and McDonald's Corp to achieve the future milestone of 10,000 stores," said McDonald's China.
Persons:
Trustar, Mubadala, Carlyle, CITIC, Kane Wu, Yantoultra Ngui, Sophie Yu, Sumeet Chatterjee, Mark Potter
Organizations:
Trustar, Trustar's PE, McDonald's Corp, CITIC, HK, Carlyle Group, Reuters, Bloomberg, Thomson
Locations:
HONG KONG, McDonald's China, China, Trustar's, Abu, Chicago, CITIC, Hong Kong, Singapore, Beijing