Investcorp, Everbright launch fund to invest in Chinese tech startups

Bahrain-based alternative asset manager Investcorp and Hong Kong-based China Everbright are combining their China-focused investment teams and will jointly manage a recently launched fund targeting the country’s tech startups.

The combined teams and investment committees of the two companies will manage the China Everbright New Economy Fund I. Investcorp had last year agreed to invest up to $150 million in the fund’s second round in its first private equity investment in China.

In a statement on Wednesday, Investcorp and China Everbright said they intend to explore the opportunity to establish a successor private equity fund jointly managed by the two parties to target the country’s tech sector.

The existing new economy fund will target to invest in technology firms ranging from e-commerce, internet services, smart retail, artificial intelligence to B2B software solutions.

“This is our most significant step so far towards expanding our footprint into the fastest growing economy in the world, China, and is in line with our strategy of growing AUM through global expansion. We believe our partnership with Everbright will help grow our investments in China and specifically in the technology sector,” Investcorp co-CEO Hazem Ben-Gacem said in a statement.

Investcorp has invested over $1.5 billion in technology businesses in the US, Europe, and Asia, across myriad verticals including data, security, fintech and mobility.

Meanwhile, Investcorp is also reportedly looking to grow its business in India to $1.5 billion in assets under management (AUM) over the next five years. In January, Investcorp forayed into the Indian market through the acquisition of the private equity and real estate investment businesses of IDFC Alternatives.

The India expansion forms part of the firm’s global plans under which it plans to nearly double its AUM to $50 billion by entering new geographies and new lines of business. Investcorp currently has $28 billion worth of assets under management.