Sino-Belgian investment fund to avoid Southern Europe
May 29, 2012 Category Foreign investment, Weekly
The €250 million private equity fund set up by China’s sovereign wealth fund to invest in Europe will shy away from the troubled southern European region and focus on Germany, France and Scandinavia. The fund, set up by the China Investment Corporation (CIC) in partnership with the Belgian Federal Holding and Investment Co and private equity group A Capital, has been backed by Vice Premier Li Keqiang, who appeared at the fund’s first-round fundraising ceremony in Brussels. André Loesekrug-Pietri, Chairman of A Capital, said that with the resurgence of regional concerns it was “not a good time” to invest in consumer-driven industries and the financial services sector with heavy exposure to southern European countries like Greece, Italy and Spain. The fund is expected to allocate 30% to 35% of its capital to Germany, 20% to Scandinavia, 20% towards France, and the remainder to Britain, Belgium, the Netherlands, and other European countries. The fund focuses on mid-cap European companies that generate between €300 million and €3 billion in sales annually. Its four investments areas include high-end manufacturing, environmental industries and clean energy, consumer brands and food safety. Loesekrug-Pietri said it might take more time to convince nervous Chinese investors about opportunities in Europe, and added that the fund still attracted Chinese investors who had a good understanding of the diversity of European markets, and who were genuinely interested in foreign investment, the South China Morning Post reports.
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