China Investment Corporation and Goldman Sachs have launched a $5 billion private equity fund which will invest in manufacturing, industrial, consumer and healthcare companies in the US, according to a statement from CIC.
The pair have pledged to split the investment, with CIC and Goldman committing $1.25 billion each, while the remaining amount will be raised by each side from Chinese and US investors, Goldman chief executive Lloyd Blankfein said in an interview with CNBC on Thursday.
Capital raised for the China-US Industrial Cooperation Partnership will target companies that have or can develop a material business connection to China, an example of which is a US consumer firm that not only needs capital to manufacture goods but also needs access to the Chinese market.
Goldman Sachs, through its Merchant Banking Division, will act as the sponsor and investment manager for the Cooperation Fund, it said in a statement.
The fund isn’t the first of its kind for the country. China also has existing partnerships with the Association of South-East Asian Nations (ASEAN), Central and Eastern Europe, as well as Latin America and Caribbean region.
The $1 billion China-ASEAN Investment Corporation Fund, sponsored by the Export-Import Bank of China, will invest in infrastructure, energy and natural resources. Meanwhile the $11 billion China-CEE Fund and $5 billion China-LAC Cooperation Fund will finance infrastructure, high-tech manufacturing, agriculture energy, natural resources and consumer goods companies.
CIC has around $813.5 billion in assets under management, according to the Sovereign Wealth Fund Institute.
Find out more about CIC’s investment portfolio and strategy in five charts.