Veteran Chinese Banker, Mideast Dealmaker Team Up to Bet on Emerging Markets

BlueFive Capital, a newly established investment firm, has been launched by veteran Chinese investment banker Fang Fenglei in partnership with Middle Eastern private equity leader Hazem Ben-Gacem. The firm, based in Abu Dhabi, is designed to identify and invest in high-growth opportunities across emerging markets, with a specific focus on channeling Middle Eastern capital toward innovative industries as the region’s economies seek alternatives for the post-oil era [para. 1][para. 2].

Ben-Gacem, who previously spent 30 years at Investcorp Holdings BSC and served as its co-CEO until September 2024, has played a pivotal role in fostering ties with the Chinese market, leading initiatives that concentrated on China and Southeast Asia within Investcorp. Fang, who is lauded as an influential figure in Chinese investment banking, was instrumental in key milestones like establishing China’s first futures exchange and co-founding China International Capital Corp. Ltd. He later held significant roles at BOC International and Goldman Sachs’ China venture. In 2008, Fang co-founded Hopu Investment Management, which rapidly grew into a major player in China’s private equity landscape with backing from Singapore’s Temasek Holdings [para. 3][para. 4][para. 5].

The close professional relationship between Ben-Gacem and Fang, established during their overlapping years at Investcorp, now provides BlueFive with privileged access and heightened credibility within China’s complex investment environment [para. 6]. Recent years have seen a surge in interest and engagement between Middle Eastern and Chinese investors, driven by the Middle East’s quest for economic diversification and China’s leadership in areas such as artificial intelligence and advanced batteries. Both regions stand to benefit from increased collaboration as their interests increasingly align, a trend industry experts have noted has accelerated since around 2022 [para. 7][para. 8][para. 9][para. 10].

Despite the rising enthusiasm, Middle Eastern investors’ familiarity with China remains relatively limited. BlueFive aims to serve as a bridge, leveraging its founders’ expertise to connect Middle Eastern capital with Chinese and broader Asian markets [para. 11]. During his time at Investcorp, Ben-Gacem helped launch the firm's first China-focused fund in partnership with China Everbright Ltd., raising $483 million to back growth-stage tech companies such as Meituan, SenseTime, NetEase Cloud Music, and iQiyi. Investcorp has since expanded to other Chinese sectors, including consumer and healthcare [para. 12][para. 13].

Currently managing approximately $650 million in assets, BlueFive’s investment team consists of 25 professionals across London, Bahrain, Abu Dhabi, Dubai, and Beijing. Its shareholders include Bahrain Mumtalakat Holding Co. and members of several Gulf royal families, with founding shareholders from Europe and China—together holding a 40% stake. Ben-Gacem and the management team control the remaining 60% [para. 14][para. 15].

China is central to BlueFive’s strategy, which spans not only the Gulf and China but also Southeast Asia, Latin America, and Africa, while also monitoring opportunities in Europe. BlueFive’s approach targets both advanced sectors (like new energy and advanced materials) and traditional ones (such as consumer goods and commercial real estate), including large-scale infrastructure projects in the Middle East [para. 16][para. 17][para. 18][para. 19].

Though BlueFive has yet to make its first direct investment in China, its areas of interest range from real estate and infrastructure to financial services and consumer sectors. The firm is particularly exploring deals involving premium hotel assets and plans to use its debut project to build up local experience. Furthermore, BlueFive aims to facilitate Chinese companies’ global expansion by utilizing the Middle East as a strategic base. It is reportedly nearing completion on a major investment involving a prominent Chinese industrial player, with multibillion-dollar funding approved for a Saudi Arabian project [para. 20][para. 21][para. 22].