CIC and Ireland’s state fund set up €150m tech fund

The fund is 50% larger than its 2014-vintage predecessor.

China Investment Corporation and the Ireland Strategic Investment Fund, a sovereign development fund managed by the National Treasury Management Agency, have teamed up for the second time to back technology companies in both countries.

The investors are each committing €75 million to the China-Ireland Growth Technology Fund II, according to a statement. Capital from the fund will be used to back Irish companies looking to tap the China market, as well as Chinese companies that view Ireland as a way to enter the European market.

Dublin-based venture-capital firm Atlantic Bridge Capital and Silicon Valley-based West Summit Capital will jointly manage the fund, similar to its predecessor the $100 million, 2014-vintage Fund I. Capital from CIC and ISIF’s debut fund supported the market entry of six Irish technology companies into China, ISIF said in a statement.

The ISIF, which has a €7.9 billion sovereign wealth fund mandate, used to be the National Pensions Reserve Fund. It typically held investments in infrastructure, housing and small and medium enterprise sector, and food and agriculture, or transactions with “positive economic impact”, the investor wrote on its website.

CIC in the past years has teamed up with various state-backed entities to promote “bilateral cooperation” among countries. Two examples of this initiative include the $2 billion Russia-China Investment Fund, which targets investments in infrastructure, consumer good and food and agriculture; and the China-ASEAN Investment Cooperation Fund I, which targets investment opportunities in infrastructure, energy and natural resources in the ASEAN countries.

Last week, CIC offloaded its reportedly less than 5 percent stake in private equity giant Blackstone, after more than a decade-long relationship. The sovereign wealth fund had bought a 9.9 percent stake in Blackstone for $3 billion in 2007 before the manager listed on the New York Stock Exchange in June that year.