Bahrain's Investcorp Inks Deal To Target Chinese Tech Investments

Bahrain–based Investcorp and China Everbright Limited have announced they are combining their investment teams to target the Chinese technology sector.

Investcorp and the Hong Kong based alternative investment firm said the move was an extension to their existing partnership, adding that the combined team and investment committee will jointly manage the China Everbright New Economy Fund I.

In addition, 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 further access China’s technology sector.

The announcement comes as China is experiencing accelerated growth in the technology sector, one that has attracted the majority of private equity investment capital.

Technology firms across the spectrum, from e-commerce and internet services, to smart retail and artificial intelligence to b2b software solutions will be considered as key targets for the team, a statement said.

Hazem Ben-Gacem, co-CEO of Investcorp, said: “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... we look forward to investing in tech companies that show significant potential to scale profitably and are managed by a strong management bench as part of our efforts to expand our offerings to our global client base.”

Zhao Wei, executive director and CEO of China Everbright Limited said: “This partnership with our valued partners, Investcorp, is an important step in attracting foreign investment and brining global perspective into China’s booming technology sector. We look forward to a successful and mutually beneficial collaboration and partnership.”

Investcorp and China Everbright initiated their first collaboration in September 2018 through a fund specialising in China’s technology sector.

Investcorp said that since 2001 it has invested more than $1.5 billion in technology businesses in the US, Europe and Asia.