Blackstone Group LP, the U.S. private equity company, is setting up a $675 million fund to invest in Brazil and will contribute $500 million in capital, the Valor Economico newspaper said on Friday.

We're raising the money, it's for this year. Brazil is very popular, Valor quoted Blackstone Chief Executive Stephen Schwartzman as saying. The group is one of the world's largest private equity firms.

Schwartzman said global market turbulence was not affecting its Brazilian plans or its ties with local partner Patria Investimentos, which already has two funds in Latin America's largest country.

Brazil is doing very well and the world has realized that, Schwartzman told Valor.

The newspaper also quoted Alexandre Saigh, a senior Patria partner responsible for private equity, as saying that the new fund was almost ready and would mainly invest in infrastructure, civil construction, food, health and education.

(Reporting by Andrei Khalip; editing by Jeffrey Benkoe)