HONG KONG—Carlyle Group LP is leading an investment in a Chinese
logistics company, betting on demand for delivery services to
support China's fast-growing e-commerce industry.
The U.S. private-equity firm is being joined by Goldman Sachs
Group Inc. and China Renaissance in putting money into Shanghai ANE
Logistics Ltd., which delivers small orders nationwide through a
network of 5,000 franchised stores. Carlyle Group's portion of the
investment is $120 million.
Logistics businesses tend to require large amounts of capital
and a franchised model can limit the amount of funds tied up in the
operation.
"China's economic restructuring and e-commerce development bring
about significant growth and consolidation opportunities in the
country's [less-than-truckload] logistics industry," said Carlyle
Group Managing Director Eric Zhang.
Private-equity firms have poured money into logistics companies
and warehousing in China as online retailers such as Alibaba Group
Holding Ltd. and JD.com Inc. experience rapid growth. For example,
earlier this month RRJ Capital invested an additional $250 million
in Shanghai-based China Logistics Property Holding Co.
Unlike in the U.S., where Wal-Mart Stores Inc. and Costco
Wholesale Corp. operate efficient logistics systems, China's
traditional retailers don't have such strong delivery networks.
That has created an opportunity for Chinese e-commerce companies to
grow more rapidly with weaker incumbents.
In April, Carlyle Group hired former Wal-Mart Chief Executive
Mike Duke, who oversaw a dramatic expansion in the retailer's
overseas operations, as an operating executive to consult with the
private-equity firm's portfolio companies and advise on its
investments.
Write to Rick Carew at rick.carew@wsj.com
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