Credit Suisse’s Zhu Said to Start Private-Equity Firm

(Bloomberg) -- Zhu Lei, a managing director in Credit Suisse Group AG’s Beijing office, is leaving to set up his own private-equity firm, a person with direct knowledge of the matter said.

Beijing-based Zhu, 36, plans to raise 9 billion yuan ($1.3 billion) in the local currency for two private-equity funds and $200 million from overseas investors, the person said, asking not to be identified as the fundraising is still in progress. Zhu will focus on investments in China, the person said.

Zhu follows Goldman Sachs Group Inc.’s China partner Fang Fenglei who set up a private-equity firm focused on investments in the world’s fastest-growing major economy. Zhu’s departure comes after those of three other senior Credit Suisse executives in Asia-Pacific since February, including Paul Raphael, former head of investment banking in the region.

Josephine Lee, a Hong Kong-based spokeswoman for Credit Suisse, declined to comment. Zhu has resigned though is still with the Zurich-based bank, the person said.

Zhu will seek about 4.5 billion yuan from Chinese investors, including state-owned companies, for each of the two local- currency funds, the person said. One of the funds will focus on industries such as infrastructure and utilities, according to the person.

Zhu joined Credit Suisse in September from Deutsche Bank AG as a Beijing-based managing director covering state-owned companies. He’s responsible for helping government-controlled Beijing Enterprises Holdings Ltd. raise as much as HK$2.18 billion in a convertible bond sale to expand a gas and water pipeline unit.

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