CIC, BNP Paribas, Eurazeo Launch $446 Million Cooperation Fund

What’s new: China’s sovereign wealth fund is launching a 400 million euro ($446 million) joint fund with French bank BNP Paribas and private equity firm Eurazeo to invest in European companies demonstrating potential in Chinese markets, China Investment Corp. (CIC) said Wednesday.

The initial amount of the France-China Cooperation fund was underwritten by the three partners, which can commit as much as an additional 250 million euros. BNP Paribas and CIC will each have an investment limit of 25% of the fund. Additional capital may be raised from third parties, CIC said.

The background: The fund is being established following plans announced during Chinese President Xi Jinping’s state visit to France in March 2019. Target companies are French and Europe-based companies that plan to expand in China in sectors including advanced industrials, business services, consumer goods and services, health care and digital technology.

In 2017, CIC set up a $5 billion cooperation fund with Goldman Sachs, eyeing U.S. projects in fields such as manufacturing and health care. The fund garnered $1.5 billion in first-round financing and has launched its first investment project.

CIC has established similar cooperation funds with financial institutions in Japan, Russia and Ireland. A British joint fund is also in the planning.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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