AGIC Capital hits $1bn target for debut fund

The Europe and Asia-based firm, which specialises in European industrial technology investments, is also set to open a London office.

Europe and China-focused private equity firm Asia Germany Industrial Promotion Capital (AGIC) has held a final close on its debut fund, hitting its fundraising target of $1 billion, according to a company statement.

The firm, which was founded in 2015 by ex-Deutsche Bank executive chairman Henry Cai, targets investments in European small- and mid-cap companies specialising in intelligent manufacturing, high-end equipment, advanced materials, medical technologies and environmental protection technologies and looking to expand their businesses into China. Typical investments made from AGIC Fund I’s capital range between €25 million to €150 million.

The firm officially launched the fund in March 2015 and held a first close on $550 million, just five months after its launch. China’s $814 billion sovereign wealth fund, China Investment Corporation, is an anchor investor in AGIC, according to PEI data.

Commenting on the fundraising Cai, said: “We will continue to act as the bridge for European companies with advanced technologies, particularly in Germany, Austria, Switzerland, Italy, France and the Nordics, helping them tap into the exciting opportunities in China and across Asia.”

“The demand for technology products in China is growing fast, driven by China’s economic reforms and by massive investments into upgrading its industrial infrastructure. We are very excited to provide powerful support to European companies in Asia, enabling them to fully realize their growth potential,” he added.

The firm has made two investments from the fund. In January last year, the firm teamed up with two state-owned enterprises ChemChina and Guoxin International to acquire German manufacturer KraussMaffei Group for €925 million, the largest outbound investment from China into Germany. It struck its second European deal in June with the acquisition of Gimatic, an Italy-based supplier of end-of-arm tools for industrial automation and robotic applications valued at €100 million.

AGIC also expects to open a new office in London in the first quarter of 2017 in order to tap into the region’s investor base. AGIC has offices in Munich, Beijing, Shanghai and Hong Kong.