Europe-Asia focussed AGIC Capital hits final close of $1b debut fund

Europe and Asia-focussed private equity firm AGIC Capital has announced the final close of its $1 billion debut fund which will invest in European small and mid-cap firms which deal in industrial technology and healthcare and help them with their Asia expansions, mainly China.

In an announcement on Friday, the firm said, the fund will be focused in high-end intelligent manufacturing, high-end equipment, advanced materials, medical technologies and environmental protection technologies “to assist their expansion in the growing Asian markets with a specific focus on China”.

“The demand for technology products in China is growing fast, driven by China’s economic reforms and by massive investments into upgrading its industrial infrastructure,” said AGIC Chairman Henry Cai on the closing of the fund, AGIC Find 1.

However, in an interview with DEALSTREETASIA last year, AGIC had said it could look beyond China with regard to the fund. “China is the biggest manufacturing economy in Asia and is our main focus, but we will go beyond that. India has a large potential market for advanced technology,” Heiko von Dewitz, Agic’s Managing Partner had said.

AGIC started building its portfolio last year and has already made significant acquisitions. In January last year, it partnered with ChinaChem and Guoxin to acquire the global machinery supplier KraussMaffei Group, then the largest outbound investment from China into Germany.

It also acquired a large majority stake in Gimatic Srl, a leading Italian supplier of end-of-arm tools for various applications in industrial automation.

With regard to Fund 1, fundraising started in March 2015 and reached a close of $550 million in five months after the launch. In December 2016, it achieved the final close.

Moreover, AGIC will open a new office in London in the first quarter of this year in a bid to strengthen its European presence. Including the London office, the firm will have its presence in five locations globally– Munich, Beijing, Shanghai, Hong Kong and London.

The firm generally invests in companies with high value-add technologies that significantly increase industrial productivity and efficiency, enable new applications and manufacturing methods and drive innovation for industrial products and solutions. It is focused on industrial technology investments mainly in Europe.

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