Bahrain-based alternatives firm Investcorp and Fung Capital, a Hong Kong private equity firm, have formed a US$500 million fund to invest in mid-cap companies across the Greater Bay Area, marking their fourth partnership for an investment.
According to the firms, the fund will invest in privately-negotiated equity or equity-linked investments in growing and profitable companies that are located in, or have nexus to, the Greater Bay Area.
“While being sector-agnostic, the fund will primarily focus on control buyouts of mid-cap enterprises with proven profitability and strong growth potential,” they say in a joint statement on October 26.
The Greater Bay Area comprises Hong Kong, Macau and nine cities in China’s southern Guangdong province, with a total population of over 70 million holding roughly 3 trillion RMB ($440 billion) of investable assets. Beijing wants to turn the area into a finance and business hub by 2030.
“The GBA is a globally competitive industrial and technology cluster and there are strong fundamentals that single out the GBA ecosystem,” Investcorp Executive Chairman Mohammed Alardhi says in the statement.
Fung Capital is the private equity investment arm of Fung Investments, the family office of Victor Fung and William Fung. Their family founded Li & Fung, one of the oldest supply chain management firms in Hong Kong.
The Fung family office and Investcorp have three other partnerships, including a $275 million Asia food focused private equity joint venture formed in 2020.
Investcorp had $42.7 billion of assets under management as of June 2022.