Investcorp to Raise Funds in CNY to Explore Buyout Options in China

The executive of Bahrain-based alternative asset manager Investcorp announced that the company is planning to raise 2 billion to 4 billion yuan ($274 million-$548 million) for its first private equity fund in the Chinese currency. The goal is to explore buyout opportunities in China. Hazem Ben-Gacem, co-chief executive officer of Investcorp, announced that the company intends to seek a license from Chinese regulatory authorities in the coming months. This license will enable Investcorp to begin raising funds from domestic institutions starting next year.

“I look forward to the day when we can expand our presence in China beyond just being an investor from the Middle East.”

Mubadala, the sovereign investor of Abu Dhabi, has a 20 percent stake in Investcorp. Amid increasing business connections between the Middle East and China, Investcorp has revealed its plans to raise funds in China. This comes as Gulf states are focusing on infrastructure, technology, and financial development and as trade tensions between the US and China continue. Geopolitical tensions are rising.

According to data compiled by LSEG, buyers from the Gulf states have announced 13 acquisitions of public and private Chinese targets this year. This is a significant increase from just one acquisition during the same period in 2022 and is the highest number of acquisitions in any year since at least 1980.

In May, Investcorp successfully completed its first buyout in China by acquiring a majority stake in Shandong Jianuo Electronics. The company specializes in providing components for electric vehicle power management and battery charging infrastructure.

The government in the city of Tengzhou, where Jianuo is located, stated that the deal size was approximately $100 million.