BNP Paribas, China Investment Corporation (CIC) and Eurazeo have held a first close of their France-China Cooperation Fund on EUR400 million.
The fund, which will be managed by Eurazeo, manifests 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.
The fund, which is underwritten entirely by the BNP Paribas Group, CIC and Eurazeo, will invest in French and continental European companies that are aiming to grow in China.
The initial partners may commit up to an additional EUR250 million to the fund, within a limit of 25 per cent of the fund for each of BNP Paribas and CIC. Additional capital may also come from third parties.
Target companies are expected to be in sectors with opportunities in China and where Eurazeo has a track record, including advanced industrials, business services, consumer goods and services, healthcare and digital tech, according to Eurazeo.
The partnership will aim to draw on CIC, BNP Paribas and Eurazeo’s experience, by CIC facilitating the fund’s investee companies entry into and development within China; BNP Paribas’ local presence and networks in France and in Europe; and Eurazeo’s private equity knowledge and ability to grow businesses internationally, mainly via its local presence in China since 2013.