Mubasher: Investcorp on Tuesday announced the launch of its first private equity investment in China since the Bahraini company’s inception in 1982.
Investcorp, a global provider and manager of alternative investment products, has partnered with China Everbright Limited, a reputable sovereign-backed cross-border asset manager listed on the Hong Kong Stock Exchange.
The Bahraini company approved an investment valued at up to $150 million in the second round of the China Everbright Limited New Economy Fund in addition to a co-investment right of up to $100 million, it said in a statement.
“In the first round, the fund received an aggregate commitment of $313 million from other investors that has been deployed into high-growth Chinese technology companies that operate in a wide range of market segments ranging from e-commerce and internet services, to smart retail and artificial intelligence,” the statement said.
Investcorp believes that Everbright is well positioned to create value in the fund’s portfolio of high-growth companies given its experience and expertise in the sector.
Economic growth in China has been endorsed by higher consumer spending, especially for new value-added services, the statement noted.
The company’s investment in the technology sector in China is in recognition of the country having the world’s highest number of internet users and being home to some of the fastest growing ‘unicorn’ technology companies valued at over $1 billion, Investcorp said.
“Today, China is a pivotal pillar of the global economy and a critical component of a balanced global asset allocation strategy,” Investcorp’s executive chairman, Mohammed Alardhi, said.
