Alternative investment company Investcorp has launched a $1 billion fund backed by China’s sovereign wealth fund CIC to invest in companies across Saudi Arabia, the wider Gulf region and China, it said in a statement on Wednesday.
The platform, which will also be anchored by institutional and private investors from the Gulf region, will target “high-growth companies” in sectors such as consumer, healthcare, logistics and business services.
The launch is the latest sign of warming ties between China and the Gulf, as countries in the region implement economic diversification plans, opening up space for investment.
Bahrain-based Investcorp, with around $50 billion in assets under management and known for taking luxury brands public, said CIC’s commitment “comes at a time when the GCC’s appeal to institutional investors is gathering pace”.
“Investcorp is perfectly placed to facilitate cross border cooperation and investments between the GCC and China,” the firm’s Co-CEO Hazem Ben-Gacem was quoted as saying in the statement.
CIC, which is owned by China’s State Council, or cabinet, invests overseas through two subsidiaries, CIC International Co and direct investment vehicle CIC Capital Corp. It also has a domestic investment unit, China Central Huijin.
Reuters
