AGIC raises $1.2b for second Europe-Asia fund
AGIC Capital, a private equity firm that focuses on cross-border investments along the China-Europe axis, has closed its second fund with $1.2 billion in commitments.
According to AGIC, the new fund was largely subscribed to by existing investors. The firm closed its debut vehicle on $1 billion in 2017, with a strong Asian following. China Investment Corporation (CIC) came in as an anchor LP, while pension funds, insurance companies, and corporates from across the region also participated.
Fund II will continue the strategy of its predecessor, targeting mid-market companies that have differentiated technologies and international growth potential, especially in Asia. Value-added industrial and advanced medical technologies are the sweet spots. The fund will make majority and significant minority investments of $50-500 million in enterprise value.
Founded in 2015 by Henry Cai, formerly executive chairman of corporate finance for Asia Pacific at Deutsche Bank, AGIC operates out of offices in Munich, London, Hong Kong, Shanghai, and Beijing.
Fund I made seven investments, primarily in Europe-based companies. Three have been exited to date: Italian robotics supplier Gimatic was sold to US-based Barnes Group in 2018; German machining specialist KraussMaffei Group was acquired by China National Chemical Corporation, also in 2018; and Soleras Advanced Coatings was exited to China's Konfoong Materials International in 2019.
More recently, AGIC agreed to sell medical laser manufacturer Fotona was exited to Vitruvian Partners.
Remaining portfolio companies include pharmaceutical packaging manufacturer Ritedose Corporation and Farsound Aviation, a supply chain solutions provider to the aerospace industry.
“The strong performance of AGIC Fund I proves that our strategy of supporting portfolio companies in their international expansion is highly effective and resilient even during times of unusual stress,” Cai said in a statement. “We will continue to focus on supporting our companies with our complementary resources and know-how.”
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