AGIC strikes first exit from debut fund – exclusive

The Asian-European manager has fully exited its stake in a German manufacturer to China's largest chemical group.

AGIC Capital has made its first exit from its debut fund by selling its stake in a German manufacturer to China’s largest chemical group, Private Equity International has learned.

The firm had used its 2015-vintage, $1 billion debut fund AGIC Fund I to team up with state-owned enterprises ChemChina and GUOXIN International Investment Corporation in January 2016 to acquire KraussMaffei Group for €925 million. It was the largest outbound investment from China into Germany at that time. ChemChina led the consortium, PEI understands.

AGIC expanded the Munich-based manufacturer’s footprint into Asia using the consortium’s industrial networks and via bolt-on acquisitions, a source with knowledge of the matter told PEI.

The source declined to provide the exit multiple but noted the sale to ChemChina generated “reasonable returns for Fund I’s investors”, which include the $814 billion Chinese sovereign wealth fund China Investment Corporation.

On the exit, the source noted AGIC thought it was the right time in the life cycle to divest its stake in KraussMaffei, adding that the sale would also “realise capital so the firm can make a few more investments from Fund I”.

The firm has deployed more than 50 percent of Fund I.

AGIC focuses on five industry sectors: intelligent production, high-end systems and components, advanced material, medical equipment and environmental protection technologies.

Investments from Fund I include Italy-based tools maker Gimatic, medical equipment manufacturer Fotona and The Ritedose Corporation, a South Carolina-based pharmaceuticals company.

In June AGIC set up an office in London, bringing its global office count to five after Hong Kong, Shanghai, Beijing and Munich. Sam Breuning, a former partner at Equistone Partners Europe, was appointed partner and head of AGIC’s UK team. His responsibilities include targeting new investments in the UK and Europe as well as future fundraising, AGIC founder and chairman Henry Cai, said in a statement announcing the London office.