A $500 million fund will be established by Investcorp, the largest alternative asset management company in the Middle East, and the family office of the Fung brothers to invest in mid-cap companies throughout China’s Greater Bay Area. The fund’s primary area of focus will be acquisitions of businesses located in or adjacent to the area encompassing the Chinese cities of Hong Kong and Macau. The fund will invest in businesses “with proven profitability and great growth potential,” according to a statement from Bahrain-based Investcorp, albeit it won’t be sector-specific.
The Greater Bay Area’s role “as one of the main economic engines of China has never been more important as the country looks to rebalance its economy,” Investcorp’s executive chairman Mohammed Alardhi said in the statement.
Investcorp and Fung Capital, which is controlled by Victor Fung and William Fung, join HSBC Holdings in starting funds to tap growth in the region of 70 million people that also encompasses cities such as Guangzhou and Shenzhen.
HSBC has so far launched three Greater Bay focused funds for sustainable lending, tech and health-care.
Speaking in an interview with Bloomberg TV on Tuesday, Alardhi said that the fundamentals of China “continue to be great” and that he expects to see “a very active China again” once country eases Covid-19 curbs.
