Investcorp launches its debut investment in China in partnership with China Everbright Limited

18 Sep 2018

Investcorp, a global provider and manager of alternative investment products, has today announced its first private equity investment in China since its inception in 1982.

Investcorp has partnered with China Everbright Limited (“Everbright”), a reputable sovereign-backed cross-border asset manager that is publicly listed on the Hong Kong Stock Exchange (Everbright, 165.HK). Investcorp, has agreed an investment of up to $150 million in the second round of the China Everbright Limited New Economy Fund L.P. (the “Fund”) as well as an additional co-investment right of up to $100 million. In the first round, the Fund received an aggregate commitment of $313 million from other investors that has been deployed into high-growth Chinese technology companies that operate in a wide range of market segments ranging from e-commerce and internet services, to smart retail and artificial intelligence.

By capitalizing on the continuing economic transformation and technological revolution in China, Investcorp believes that Everbright is well positioned to create value in the Fund’s portfolio of high-growth companies given its experience and expertise in the sector.

Investcorp’s investment in the new economy sector in China marks a continuation of its global expansion strategy as it gains exposure to the world’s second largest economy that is increasingly attractive for private equity investing. Economic growth in China is underpinned by higher consumer spending, especially for new value-added services. Investcorp’s investment in China’s technology sector, in particular, is in recognition of the country having the world’s highest number of internet users and being home to some of the fastest growing ‘unicorn’ technology companies valued at over US$1 billion.

Investcorp’s Executive Chairman, Mohammed Alardhi, commented: “Investcorp continues to execute its global expansion strategy in order to provide its clients, partners and stakeholders with access to a wider range of attractive investment opportunities worldwide. We continue to innovate and carefully adapt our investment strategies to meet the evolution of both the global market place and our clients’ needs. Today, China is a pivotal pillar of the global economy and a critical component of a balanced global asset allocation strategy.”  

Hazem Ben-Gacem, Co-Chief Executive Officer of Investcorp, added: “As a global investor in technology, we are pleased to announce this partnership with Everbright who we believe, with its on-the-ground expertise, is an ideal partner for Investcorp in the Greater China region. We look forward to working with Everbright’s CEO, Chen Shuang, and his team.”

The Fund’s portfolio comprises investments in several high-profile companies in Greater China including one of the world’s largest unlisted mobile e-commerce platforms; one of the biggest long-form online video platforms; the largest online-to-offline company for consumer services; a leading deep-learning artificial intelligence platforms; a popular short-form mobile video sharing platform; one of the leading technology-driven smart retail companies; and a leading smart wireless headphone company.