Permira named CDB's European PE partner
UK-based private equity firm Permira has entered into an agreement with CDB Capital, the investment arm of government-owned China Development Bank, to become the bank’s exclusive European private equity partner.
According to Permira, the parties signed an agreement that enables them to pursue private equity investment opportunities in China as well as overseas in businesses looking to expand in China. Part of their remit will also be supporting Chinese firms as they look to expand in Europe.
"China Development Bank is one of the key drivers of China's economic development," Kurt Björklund, co-managing partner of Permira, said in a statement. "Our cooperation agreement will provide the Permira funds with excellent access to investment opportunities in China."
Permira has invested more than $2 billion in Asia in three companies since 2005: Macanese gaming and hotel business Galaxy Entertainment, Tokyo-based international agrochemicals business Arysta, and HK-headquartered satellite business Asia Broadcast Satellite.
Last month, news surfaced that CDB would launch an overseas investment operation in Hong Kong and sign strategic partnerships with several global private equity players including TPG and KKR, as well as Permira.
CDB is a policy lender with ambitions to become a fully fledged commercial bank. It set up China Development Bank Capital in 2009 and the Hong Kong operation is started business this week.
CDB Capital has already invested in and managed 19 funds targeting non-financial sector companies. It wants to develop into a world-class asset manager with more than RMB600 billion ($94 billion) under management over the next 10 years. This ambition dovetails with the Chinese government's desire to fund overseas expansion by domestic companies.
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