The Bear Stearns Companies Inc. announced a strategic investment alliance with Chinese investment firm, Eagle Investment Group.

Bear Stearns’ private equity arm, Bear Stearns Merchant Banking will form the alliance with Eagle to focus on opportunities in the retail sector in China. Bear Stearns and Eagle will pledge US$250 million to invest together, for a total co-investment platform of US$500 million.

Investments made through the new alliance will help support China’s rapidly maturing and expanding retail sector, the firms said. They note that retailers in China today are working quickly to adopt international standards and strengthen their businesses.

“We are excited about this opportunity to invest alongside Bear Stearns,” said Wong Kwong Yu, chairman of Eagle. “With its tremendous success, especially in the retail sector, Bear Stearns Merchant Banking will contribute to Eagle’s success in China. With our years of retail experience in China, I am looking forward to working with the Bear Stearns Merchant Banking team as they extend their successful track record into China.”

“This is an exciting commitment for Bear Stearns,” said James Cayne, chairman and CEO of Bear Stearns. “Mr. Wong is a highly respected leader in the Chinese business community and an excellent business partner. We believe that his capabilities, Bear Stearns’ solid backing and the strong track
record Bear Stearns Merchant Banking has demonstrated in private equity will make a powerful combination.”

“We are looking forward to partnering with Mr. Wong and developing opportunities in China. As a leading entrepreneur in China, he will bring an extraordinary perspective to our investments,” said John Howard, CEO of BSMB. “The retail sector is one of the leading growth engines behind the economic expansion in China and we look forward to investing in strong brands that can benefit from our firms’ combined expertise.”