Chinese funds withdraw US private equity investments

Several Chinese state-backed funds have withdrawn capital from US private equity (PE) firms as rising geopolitical tensions between China and the United States prompt a shift in cross-border investment strategies, according to the Financial Times. Some funds are also avoiding new investments involving US PE participation. The move, reportedly driven by pressure from the Chinese government, reflects concerns over the increasingly strained relationship between the two nations. Affected US firms include major players such as Global Infrastructure Partners, Thoma Bravo, Vista Equity Partners, Carlyle, and Blackstone. The pullback is most noticeable in mergers and acquisitions, where Chinese fund managers have pulled out of planned investments in US companies.