Bahrain-based global alternative asset manager, Investcorp, has joined forces with Fung Capital (Fung), the investment arm of the Fung family in Hong Kong, to invest in mid-cap companies across China’s Greater Bay Area (GBA), encompassing the Guangdong Province and the two Special Administrative Regions of Hong Kong and Macau.
The GBA boasts a large number of innovative, growing and profitable private enterprises and presents a highly attractive investment destination. It is currently expected that, once established, the fund will be operated out of Hong Kong.
The $500 million fund was launched in Riyadh on the first day of Saudi Arabia’s flagship Future Investment Initiative (FII). The fund will represent the fourth venture between both entities combining Investcorp’s 40 years of global private equity investing and operational value creation expertise with Fung’s more than 115 years of successful commercial history connecting Asia with the rest of the world through trade.
“We are proud to announce this new fund on the first day of FII with our partners Fung Capital. The GBA is a globally competitive industry and technology cluster and there are strong fundamentals that single out the GBA ecosystem. There is big potential, particularly, for GBA-centered mid-cap companies with innovative products and services targeting Asian but also global customers to be grown into significantly larger players. GBA’s role as one of the main economic engines of China has never been more important as the country looks to rebalance its economy towards a consumption and innovation-driven model, and the GBA offers enormous investment potential.”
The fund will engage in privately-negotiated equity or equity-linked investments in growing and profitable companies based in or with nexus to the GBA. While being sector-agnostic, the fund will primarily focus on control buyouts of mid-cap enterprises with proven profitability and strong growth potential.
Mr. Kevin Lam, Managing Partner of Investcorp Fung GBA Fund said, “we are very pleased to again join forces with Investcorp to invest in businesses meeting the unique needs and aspirations of Millennials and Gen Zers across China and the world. Hong Kong is strategically located for investors to access the fast-growing consumer markets in the GBA and as a bridge between China and the World. Investcorp brings a strong global alternatives investment platform and brings its unique Middle East heritage and understanding of these emerging markets.”