CDC International Capital and KIC ink co-investment deal

The French-Korean partnership seeks to invest up to €500 million in cross-border transactions.

CDC International Capital, an investment arm of France’s La Caisse des Dépôts Group, and Korean sovereign wealth fund Korea Investment Corporation (KIC) have signed an agreement to co-invest in French and Korean companies, CDC said in a statement.

Under the partnership, KIC will invest up to €500 million in a variety of sectors in France and other geographies of mutual interest to both countries, with investments taking the form of equity stakes in private enterprises as well as in real estate and infrastructure.

An investment team consisting of senior professionals from both CDC International Capital and KIC will manage the investments.

South Korea and France also signed more than 20 memorandums of understanding that outline, among other things, expanding technological cooperation in areas like autonomous vehicles, charging stations for electric vehicles and renewable energy.

CDC International Capital invests about €1 billion of assets of the Caisse des Dépôts Group and other institutional investors. Typical investments made by CDC range from € 15-80 million per deal. La Caisse des Depots is a French state agency that manages 43 pension schemes including local authority funds. It has over €156 billion of assets invested across real estate, insurance, transportation, public investment banks and construction engineering.

The $92 billion KIC fund has about 4 percent of its total assets allocated to private equity. It had increased its allocation to alternatives from 8 percent at the end of 2014 to 12.4 percent in 2015, it said in its latest annual report.

Among KIC’s commitments in Asian funds are Hong Kong and Tokyo-based Longreach Group, Tata Capital, Mubadala Infrastructure Partners and The Blackstone Group’s GSO Capital Solutions Fund, according to PEI Research & Analytics.

In other news, KIC had recently appointed Seung Je Hong as its chief risk officer. Before joining KIC he was a director general of the International Department and a member of the Foreign Exchange Reserve Risk Committee at the Bank of Korea.