China’s sovereign wealth fund China Investment Corporation (CIC) has partnered with French asset management company BNP Paribas and Paris-listed Eurazeo to launch a €1-1.5 billion ($1.12-1.68 billion) fund to back European companies seeking to expand in China.
According to an announcement, CIC, BNP Paribas and Eurazeo will invest significantly in the fund, alongside other investment partners.
Eurazeo will be responsible for managing the fund, as well as choosing and managing the investments.
“Eurazeo’s investment teams are looking forward to contributing their expertise together with CIC and BNP to help French and European companies to capitalize on opportunities in the Chinese market,” said Virginie Morgon, CEO of Eurazeo.
Eurazeo is a global investment company, with a diversified portfolio of €17 billion in assets under management, including nearly €11 billion from third parties, invested in over 300 companies.
CIC boasts a corpus of $941 billion and has invested in several overseas companies ranging from home-sharing startup Airbnb, Canadian mining company Tech Resources to US private equity firm Blackstone. It is also a shareholder in 17 Chinese state-owned financial institutions, including China Construction Bank Corp and Agricultural Bank of China.
The investor is working with HSBC to launch a 1 billion pound fund to invest in companies in the UK with business ties to China. The wealth fund recently partnered with Nomura Holdings and four Japanese investors to set up a Japan-China Industrial Cooperation Fund.