Ferranti Capital, a Chinese private equity group, is planning to list a fund on AIM, the London growth market, later this year after the firm has completed its first investment.
Ferranti Capital’s first acquisition is the machine tools division of UK engineering firm Renolds, for £5.75 million (€8.7 million; $11.3 million).
Renolds has two main operating subsidiaries, Jones & Shipman Precision, a precision grinding machines manufacturer, and Holroyd Precision, a gear cutting machine tools manufacturer, which are expected to generate more than £20 million in global sales this year.
Ferranti Capital believes its current pipeline of UK and other European investment opportunities is worth more than £100 million.
Ferranti will merge western European companies in the engineering, manufacturing and technology sectors with high-growth Chinese companies.