Middle East asset manager Investcorp eyes up to $550 million in first China yuan fund
By Roxanne Liu and Kane Wu
BEIJING (Reuters) — Bahrain-based alternative asset manager Investcorp is aiming to raise 2 billion to 4 billion yuan ($274 million-$548 million) for its first private equity fund in the Chinese currency, its executive said, to explore buyout opportunities in the country.
Investcorp plans to apply in the next few months for a license with Chinese regulatory bodies that will allow it to start raising funds from domestic institutions next year, Investcorp's co-chief executive officer Hazem Ben-Gacem said.
«I hope over time, we will be more than just a Middle East investor in China. I want us to be perceived also as a local Chinese investor,» Ben-Gacem told Reuters, adding that the final fundraising size will depend on investor appetite and market conditions.
Abu Dhabi sovereign investor Mubadala holds a 20% stake in Investcorp.
Investcorp's China fundraising plan comes as business ties between the Middle East and the world's second-largest economy pick up amid the Gulf states' infrastructure, technology and financial push, and Sino-U.S. geopolitical tensions.
Buyers from the Gulf states have announced 13 acquisitions of public and private Chinese targets this year, versus just one during the same period in 2022 and more than any other year since at least 1980, according to data compiled by LSEG.
Investcorp completed its first buyout in China in May, purchasing a controlling stake in Shandong Jianuo Electronics, which provides components used in applications such as electric vehicle power management and battery charging infrastructure.
The deal size was about $100 million, according to a statement by the government in the city of Tengzhou, where Jianuo is based.
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