Eurazeo's China Acceleration Fund completes first investment
Eurazeo has completed a EUR80 million investment from its China Acceleration Fund in DORC (Dutch Ophthalmic Research Center), a specialist in the area of vitreoretinal surgery.
This is the fund’s first investment. The aim of the fund is to invest in French and European companies active in sectors with high growth potential in China, alongside Eurazeo.
BNP Paribas, China Investment Corporation (CIC) and Eurazeo held the first close of the France-China Cooperation Fund at EUR400 million in June. Eurazeo has been located in China since 2013.
The fund, which will be managed by Eurazeo, manifested plans set out last year, including a letter of intent signed in the presence of China's and France's presidents Xi Jinping and Emmanuel Macron. It will be seeking investment opportunities alongside Eurazeo’s middle market buyout strategies; Eurazeo Capital and Eurazeo PME.
In connection with this investment by the Eurazeo China Acceleration Fund, DORC will gain access to the networks of local experts built up by China Investment Corporation, BNP Paribas and Eurazeo, the fund’s three partners.
It will enable DORC to ramp up its expansion in China, where growth in the vitreoretinal surgery market is expected to be in the range of 15 to 20 per cent in coming years.
This syndication has no impact on the other funds managed by Eurazeo, in particular Eurazeo Capital IV, which is also an investor in DORC. Eurazeo currently provides 50 per cent of ECAF’s commitments. The positive impact on Eurazeo’s cash position is EUR40 million.
DORC is a Eurazeo Capital portfolio company. It manufactures and distributes disposable and reusable instruments, liquids and machinery for ophthalmic surgery, and specifically those used in vitreoretinal procedures.
The fund has contributed to the creation of an advisory committee, which includes Chinese surgeons, which will assist DORC with its market entry and help with the development of an offer designed to meet specific local needs.