China's CIC launches fund with Eurazeo, BNP

According to a release, all three partners will invest significantly in the fund and pursue additional LP commitments. Eurazeo, which has a team of eight professionals in China, will act as fund manager, targeting French and European companies seeking to expand in China.

Eurazeo has EUR17 billion in assets under management and a portfolio of more than 300 companies of all sizes. The firm opened its China office in 2013 and helps companies enter the country through support with issues such as local recruitment, supply chain management, and opening physical stores.

“We have helped a number of companies expand in China with businesses involving senior housing, animal food, electric vehicle parts, financial services, and fragrances,” Eddie Chen, Eurazeo’s head of China, told AVCJ last year. “The biggest challenge for management teams that have never done business in this market before is implementing the strategy cost-effectively.”

Chinese investment in Europe has persisted despite concerns among European governments about the economic and national security implications of wide-scale technology transfer. Europe accounted for 56% of the $103.8 billion that Chinese investors committed in overseas markets as of October last year. This compares to 30% and 48% in the two preceding years.

Recent activity by CIC in this trend includes the launch of a EUR150 million cross-border technology fund in partnership with the state-controlled Ireland Strategic Investment Fund. The fund will be co-managed by Dublin-based Atlantic Bridge and Beijing-based WestSummit Capital, investing both Irish companies seeking to enter China and Chinese companies looking to use Ireland as a European base.

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• Topics
• Greater China
• Europe
• Growth
• Fundraising
• China
• CIC
• Eurazeo
• Outbound investment