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Haixia Capital and LBO France to establish EUR500m Franco-Chinese investment program

LBO France and Haixia Capital, a subsidiary of China SDIC Gaoxin Industrial Investment Corp Ltd, one of the five private equity management firms of SDIC, are establishing a long-term partnership with, as a first step, the creation of a joint-venture to invest EUR500 million in companies with high development potential in China and Europe.

Based mainly in Beijing and Fuzhou, Haixia Capital has been one of the best-known private equity firms in China in recent years (with EUR6.9 billion in assets under management by the end of 2020).

As the EU’s leading country in foreign investments, the world’s fourth-largest exporter of services, and the second-largest EU market, with GDP of EUR2.303 billion in 2020 (source: INSEE), France offers considerable potential for Asian investors. China, meanwhile, is the world’s largest consumer market, with 1.4 billion potential consumers.

It is against this backdrop that LBO France and Haixia Capital have decided to pool their know-how, in order to unlock synergies on their respective markets and strengthen their capacity to spot investment opportunities. The joint-venture arose from this common ambition. In addition, LBO France plans to set up an office in China.

Haixia Capital will gain access to LBO France’s ecosystem with entrepreneurs and investors, which is backed by a 30-year-plus track record on the French market. Through its new partner, LBO France will enjoy special access to an extremely large market and an influential network that will allow it to strengthen its ties with some of its invested companies that have suppliers and/or clients in Asia, and to provide support to European companies that want to make inroads there.

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